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During the summer of 2008, when oil prices jet up to about 150 dollars a barrel, the United States was in the midst of a growing recession with no end in sight. The crude oil prices topped any price in the history past the industrial revolution. The prices were high due to a number of causes. The first cause was the weakening of the dollar in the market. The weaker dollar meant higher prices for almost everything ranging from household goods to military aircraft. The rise of the oil prices, and the loss of jobs combined with the high foreclosure rate deteriorated the economy to shards which left the United States and the World in a state of disease. The extreme oil prices were also interpreted by scientists as a result of oil reserves being used up, but the lower prices in early 2009 discouraged that idea. Due to the high crude prices, the prices of many airline tickets boosted upward. The prices of anything made from oil such as plastics also increased. This meant that the US Treasury had engage inflation, which led to the most extreme recession experienced since the Great Depression.

Even though the oil prices climbed to 150 dollars in just one summer, they plummeted to just 40 dollars in 5 months. Both crude oil and natural gas prices fell much lower than expected. The oil prices are prematurely optimistic, but no one can tell yet if consumer confidence is going to grow because of crude oil prices. Maybe due to the low crude prices, more cars would sell, helping Detroit automakers revive their companies, but that would only happen if the consumer starts spending.

Crude oil is the most actively traded commodity on the New York Mercantile Exchange, and because of its excellent liquidity, and price transparency, it is used as a principal international pricing benchmark. Many expect this commodity to drop down to about the December 2008 40 dollar levels, which might actually happen. The price as forecasted by the New York Mercantile Exchange might fall until about January of 2010, and then rise up to another high, and then decline until the summer of 2010, when it would rise again. This all depends on the current recession, price of operating refineries, and even the amount available in oil reserves. Big oil companies such as Exxon, and British Petroleum will suffer due to the high oil prices, and unless the consumer starts to purchase cars, and using oil, the tumbling effect will continue. The recession, if solved would be the salvation for almost every industry, especially the oil industry, which has taken many hits since the 1970’s. The oil prices as shown by any major forecasters are generally heading higher, and due to that, so are heating oil prices, and slowly but surely, the cost of living. No one can accurately predict oil prices, but we have a general idea of where they are heading. In the midst of a world where oil is used everywhere, there will be a great competition for oil, and it might end in destruction of the world.