Oil plunges yet again

In light of the increasing financial crisis around the world, oil, which was well over 140 dollars in July, oil demand has continued to drop and fell nearly 6 percent in today's stock market run, closing at nearly 40 dollars a barrel. What happened with the demand in July has nearly reversed itself, much in due part to Chinese decline in demand, which recorded over a 3 percent drop in November for oil consumption.

The Organization of the Petroleum Exporting Countries (OPEC) last week agreed to reduce output by another 2.2 million barrels per day, adding to agreements to cut 2 million bpd from global supplies made since September to help balance the market and prop up prices.

While analysts have warned to not be comfortable with the state of oil since the assumption is that come spring and summer gas prices should increase to potentially 2.50-3.00 a gallon, even with the decrease in production, the long term prospects of demand and production could make the 4.00 a gallon gas we all had last summer seem affordable. Either way, this is good news in terms of "going green" and the reversal that has trended down, but basically--enjoy it while it lasts.

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