Economy could drive oil prices down

That doesn’t mean oil will plummet — unless there’s a severe recession, said Evans, who expects prices to hover near $70 a barrel. These concerns have prompted banks and hedge funds to make big bets on oil — investments that put further upward pressure on prices. Some members are producing above their quotas, either to cash in on high prices or, in the case of Saudi Arabia, to help bring prices down to keep the global economy on track. Lester Lave, professor of economics at Carnegie Mellon University’s Tepper School of Business, notes that since the oil shock of the early 1980s, America has halved its energy use per unit of gross domestic product. read more

[Tags]prices, oil, energy, mdash, demand, 2008, oil prices[/Tags]

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