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Oil prices
Why are oil prices falling? Do you think they will bottom out? what price?
The oil market is volatile - prices will fluctuate for the foreseeable future - higher prices are around the corner.
Oil prices are falling because they were run up by speculation in the first place. Oil ran around $35/barrel for many years prior to the recent oil bubble drove it to $160 and then popped.
They might return to that level while the world economy is floundering, but my guess is they’ll stabilize again at the $40-$45 range for the next few years. However, with this oil shock in our memories, a new US administration highly motivated to support alternative energy sources, and a real technological ability to move away from oil which has never existed before (nanosolar is on the brink of viability and will totally change the world energy equation), I think the oil heyday is over. 10 years from now, oil will be trading for $20/barrel and drifting ever lower.
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