Oil Drops Below $80

While Obama is probably enjoying the dropping gas prices, the underlying cause is very troublesome:

Just months ago, some energy-market prognosticators spoke about $150-a-barrel oil like it was a foregone conclusion.

Today, crude is worth barely half that scary figure.

Crude tumbled below $80 a barrel on Thursday for the first time since last fall in yet another stark display of diminished global growth prospects and overflowing supplies of crude.

While consumers will understandably cheer the cooler oil prices, as they translate to moderating costs at the pump, the selloff from the February highs doesn’t paint a pretty picture about the economy.

“It’s a bitter sweet pill for the consumer,” said Stephen Schork, editor of the Schork Report. “The only reason we’ve gotten down to this level is because the (economic) outlook over the next six to 12 months is absolutely grim.”

I saw Regular Unleaded for $3.67 yesterday, which for So Cal is the lowest we've seen for quite awhile. Not that long ago we were looking at $4.39. I certainly won't complain about the dropping prices, but there's big economic trouble ahead.