Storage space has become tight for traders locking up space for crude and it created a huge rift in prices between oil that must be delivered in several weeks and oil that can be taken in February. Therefore, the January contract for crude expired on Friday and with stockpiles rising at the key storage facility in Cushing, Oklahoma, the price dropped close to a five year low as brokers and traders attempted to unload for whatever they could get. That is good for the average person. Sounds like they got greedy and now have to give up their oil.
Now in a glut of supply, with space tight, light, sweet crude for January deliver fell $2.35 to settle at $33.87, a level last seen in early 2004 and music to my ears. The February contract, however, rose 69 cents to settle at $42.36 a barrel. Enjoy the low prices while we can. It is so nice to pay $15 to top off your tank rather than $30 or more.
I don't know how people made it with gas guzzling vehicles when the prices were so high and I know it put a lot of truckers out of business and they are the life's blood of our country now, moving groceries and everything else we use. It's too bad the train had to go the way of the dinasaur because anymore you feel like you are just surrounded by semis on the freeways and it is not always a comfortable feeling. A highway patrolman once told us if you find yourself driving between 2 semis, get out of there as soon as possible. If there is ever an accident, you will be crushed.