“Surging economies in China and India created greater demand for oil. Middle East instability, including threat of war against Iran, placed future oil supplies in jeopardy. The federal government’s fiscal irresponsiblity created monetary inflation, motivating investors to buy natural resources as a hedge. The result? Oil prices soared, meaning gasoline prices soared. So what did people do? They stopped driving so much; gasoline consumption in the U.S. is down nearly 4% from last year. What happened? Oil speculators perceived the market was peaking and started selling. The result? Lower oil prices, leading to lower gas prices.” (08/07/08)