Gasoline prices are on the verge of crashing down to below $2 a gallon. The price of oil may dip below $50 a barrel.
Even with renewed demand from a global economic resurgence, energy prices continue to fall. The U.S. has suddenly become the world’s largest combined producer of oil and natural gas.
That fact — along with a desire to weaken hostile Iran and Russia — has prompted the oil-rich Gulf sheikdoms to keep pumping oil even as the price falls. In their game of petro-chicken, the desperate sheiks hope that either their poorer enemies will run out of cash, or that fracking in the U.S. will become unprofitable and cease.