Free Republic

WASHINGTON - The recent sharp drop in the global price of crude oil could mark the start of a massive sell-off that returns gasoline prices to lows not seen since the late 1990s - perhaps as low as $1.15 a gallon. "All the hurricane flags are flying" in oil markets, said Philip K. Verleger, a noted energy consultant who was a lone voice several years ago in warning that oil prices would soar. Now, he tells McClatchy Newspapers, they appear to be poised for a dramatic plunge. Crude oil prices have fallen about $14, or roughly 17 percent, from their...

Twenty months ago, when plenty of folks were reeling at $48-per-barrel oil, energy economist Philip Verleger predicted that the price was headed for $60. A prolific author, Verleger served in the Treasury Department under President Carter. He now runs a consulting business out of Aspen, Colo., and is a visiting fellow with the Institute for International Economics. Verleger explains why more pain could be ahead at the pump. President Bush is going to stop adding crude oil to the Strategic Petroleum Reserve. What impact will that have? Since we don't have any refining capacity now, none. The tanks are full....