From an interview on NPR this morning, the insight information was that 10-15% fluctuation (minus or plus in prices per barrel of oil) is linked to pure speculation. According to the oil analyst, (I don’t remember his name) is that the true value of a barrel of petrol, based on fundamental economics of supply & demand, should be in the low $50s . Hence – or + 10-15% is just pure speculation (specifically based on Geo-Political news…….or BAD news).

However, today’s price is somewhere around $61/ barrel. My guess is there should be some more room to future drops (as long as Iran and Middle East issues are being tamed).

According to the same report, OPEC is working hard to keep the production & price of oil in the low $60s (that is OPEC’s production optimum / equilibrium)