NEW YORK, Sept. 15 (UPI) -- Recent drops in the U.S. prices of crude oil and gasoline has prompted speculation that the commodities could get much more inexpensive.
This week crude oil prices fell 4.4 percent and natural gas was off 12.2 percent.
Part of the reason for the price drops is that fears of war between Iran and the United States over the Islamic republic's nuclear ambitions are subsiding, the Seattle Times said Friday.
Another part of the reason is that U.S. energy companies have built up inventories of crude oil and gasoline and they now stand at nearly 16-year highs.
"If we continue to build inventories, and if we have a warm winter like we had last winter, you could see a large fall in the price of oil," said Gary Pokoik, who manages Hedge Ventures Energy in Los Angeles, an energy hedge fund.
Philip Verleger, a noted energy economist, suggests that if oil traders fear a worsening price spiral they could sell off their futures contracts, which in turn could drive oil prices to $15 or less a barrel, at least temporarily.
And that translates into a pump price for gasoline of about $1.15 per gallon.
