If gas prices were plummeting due to a decrease in demand that would justify pessimism. But my impression is that they are dropping due to increase in supply, which would make this article a farce. Am I wrong?
Lack if business and required transportation.
Yeah, it’s demand. Other supply has caused some, and now Iran is going to be jumping in, I think with the oil they export.
The economy is collapsing as seen by the Baltic Dry index, M2 money supply, the labor force participation rate , etc..
The price of oil is down because of over production globally. When the US refineries go into re-tooling to get ready for summer blends, as mandated by the government, they will buy less oil temporarily, too.
Demand is dropping in China. China's bursting bubble will drag us down economically. (The dollar will be a safe haven, which will buffer the US somewhat.)
And yes, supply is also high. But why? It's because demand dropped, causing the OPEC countries to scramble and break their cartel, which means violating the cartel's production limitations. Increased production causes an increase in supply.
It's also true that technical advances like fracking have added to supply, helping to spark that feedback loop even more.
Partly right - they also go down because the artificially high prices due to so many betting on and investing in high energy prices has come home to roost.