Dropping Prices: Two TheoriesI put it in the same category as a 50 degree day in January (at least in Minnesota), or the movie theatre with the popular new movie -- and no lines: a welcome development, to be sure, but one that's still slightly unnerving.
What am I referring to?
The rather steep drop in gas prices the last few days in the Twin Cities.
That, just ahead of Memorial Day weekend -- typically a time of peak demand and correspondingly high prices.
Less Pain at the Pump
What's going on?
The rational explanation is that the economy just got bumpier, hurting demand and causing prices to fall.
The political explanation (and what isn't lately)?
The oil producers, led by BP, are in lots of hot water these days, and don't want to raise the temperature further by inflicting more pain at the pump.
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