Crude oil traded in the $38 per barrel range Monday, up from recent five-year lows but down a bit from last week’s $40 mark and well below the $147 high set earlier this year.
Oil sank to $33 per barrel recently, but prices rose up somewhat in recent days with Israeli air strikes in Gaza, projected OPEC production cuts and possible bulk purchases of crude by the Chinese. Still, crude is down 74 percent from the record high sets earlier this year.
U.S. gasoline prices remain low with a national average $1.62 per gallon and a Phoenix-metro average of a $1.50 per gallon, according to AAA.
This is not exactly good news.
Domestic oil production needs a price of $70 per barrel.
Below that price, we simply import more oil.
FD
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