$20 barrel oil soon?

There's talk about that happening this year. There are two factors in that outcome: 1) The coronavirus and 2) an OPEC price war.

How does that price translate into prices at the pump? If $10 oil is $1.00 per gal at the pump, then the price should be fairly close to a buck. Not a buck but close to a buck. Imagine that.

Back in 2008, when oil peaked at $150, the prices around here were about $4.00. The most I ever paid for a gallon of gas was about $4.15 if memory serves.

The oil boom might go bust.

If we are lucky, that will be all that happens. What might be a bit of worry is if there is a popping-of-a-bubble type phenomenon. This could have ripple effects throughout the economy.

Incidentally, I note that Saudi Arabia is going to pump over 10 million barrels per day. Is there really any need for such output in the midst of a glut?



Update:

Wow. Well, I didn't expect a big selloff today. It was already ongoing by the time I posted this. I posted it at about 9:30 central time. The market opens at 8:30 central.

I don't follow the markets much anymore. The thing that alerted me to this selloff was the Bongino Show. He called it a "somber" day. Maybe he bought the dips earlier. There is a problem with buying dips. You have to time them at bottoms, or you may ride that sucker to the bottom with big losses before the thing bottoms out.

If I knew how to buy at bottoms, I would be wealthy right now.