In December I posted a blog about why gas prices will go back up and it received numerous hits. The content of that post is now playing out. Mark J. Perry just released some data of oil rigs being shutdown due to the drop in price of crude oil. Here is what he found:
US Oil Rigs Fell Last Week to 1,317, Down 292 and 18% from October Peak of 1,609
This is a quick reversal so I wouldn’t be surprised if 500 shutdowns happen before March. With production falling and the strength of the dollar in question, crude oil will eventually start rising.