| It's not an automatic follow-on, don't forget that the stuff sitting in tank on the forecourt was distilled when the price was appreciably higher. That said, although there are other factors in play as well, broadly speaking you've got fracking in the US to thank for this. They are now importing 30% less oil than they were 3/4 years ago due to the increase in domestic product. There's also a school of thought that it's in Saudi Arabia's long term interest to force prices down to about US$ 80 per barrel, as that's (roughly speaking) the price level at which fracking in the US becomes uneconomic, but it'll take a year or two for that to filter through. |