- House GOP ready to move border bill
- Bomb squad called after live WWII artillery washes on Cape Cod beach
- HAYDEN: Intelligence, evidence and the case against Russia
- Ohio university quiz implies atheists are naturally smarter than Christians
- Rep. Henry Cuellar on border crisis: ‘Playing defense on the one-yard line’
- Activists vow to occupy fast-food restaurants to get higher pay
- Rep. Luis Gutierrez: Senate Dems wary of immigration politics
- Summer camp for 1 percenters: Sushi, limos and shopping at FAO Schwarz
- Colorado gun crackdown law found to be built on faulty data
- Hank Aaron steps to fundraising plate for Democrat Michelle Nunn
Gas, oil costs start to decline
Question of the Day
Lehman Brothers, a Wall Street firm that has led the charge toward higher oil prices this year, this week altered its forecast and said oil and other commodity prices probably have peaked.
“It appears that the long-awaited commodity price correction has finally arrived,” said Lehman analyst Jim McCormick, noting that demand for oil is declining worldwide. Lehman expects premium crude prices to end the year at $110 a barrel — down significantly from $125.49, where they closed in New York trading Thursday.
In the U.S., Daniel Yergin, chairman of Cambridge Energy Research Associates, said oil prices above $100 per barrel and gas prices exceeding $4 per gallon appear to have marked a breaking point for consumers and political leaders.
“We are seeing the beginning of a powerful response,” including a “sharp shift towards fuel economy in the minds of consumers when they enter an auto showroom,” increased use of public transportation and carpooling, and enactment of the first increase in automobile fuel-efficiency standards in 32 years in December.
The changes are forcing automakers to abandon money-making strategies based on building big cars and sport utility vehicles and to expedite changes in design and engines to increase fuel efficiency, something of “great significance and lasting importance” and involving “great cost in very difficult circumstances,” Mr. Yergin said. Ford reported a record $8.7 billion loss Thursday, for a total $24 billion in losses since 2006, as consumers rejected SUVs and trucks.
As a result, last year probably marked the peak in U.S. gasoline consumption, Mr. Yergin said. “This has worldwide effects. For the nine-plus-million barrels of gasoline that the U.S. uses every day is larger than the total oil consumption of any other nation, including China.”
About the Author
- Economists see signs of another market bubble
- Crude oil will head north of the border to Canada
- S&P: Boeing to suffer if Ex-Im Bank killed
- U.S. job gains, unemployment dip push markets into record territory
- Unemployment falls to 6.1 percent amid U.S. hiring surge
Latest Blog Entries
Second- and third-stringers eye 2016 if front-runner stumbles
- Michelle Obama says money in politics is bad, asks donors for 'big, fat check'
- 'We're coming for you, Barack Obama': Top U.S. official discloses threat from ISIL terrorists
- Presidents of Honduras, Guatemala blame U.S. for border children crisis
- NAPOLITANO: What if our democracy is a fraud?
- EDITORIAL: Detroit's water 'spigot bigots'
- PRUDEN: The Democratic-wannabe mice under Hillary Clinton's feet
- Let it roll: D.C. Council hits Las Vegas on taxpayer's dime, leaves $14,000 tab
- White House readies for House GOP impeachment push: 'Foolish' to ignore
- Hamas rejects Kerry's call for cease-fire; Fears grow others could join fight against Israel
- Brian Kelly, Notre Dame ready for different route to title
Obama's biggest White House 'fails'
Celebrities turned politicians
Athletes turned actors
20 gadgets that changed the world
Fighting in Iraq