Oil drops to 8-month low, pump prices fall again

(NEW YORK) — At least gasoline should cost you less in 2013. Hamburger, health care and taxes are all set to take a bigger bite out of the family budget this year. But drivers’ annual gas bills are expected to drop for the first time in four years. Forecasters say ample oil supplies and weak U.S. demand will keep a lid on prices. The lows will be lower and the highs won’t be so high compared with a year ago. The average price of a gallon of gasoline will fall 5 percent to $3.44, according to the Energy Department.

The price of oil fell to a three-month low as big corporations cut earnings forecasts, raising concerns about economic growth and oil demand.

The price of oil fell to a three-month low as big corporations cut earnings forecasts, raising concerns about economic growth and oil demand.

Inquiring minds are tired of the spotlight on Greece (believe me I am as sick as anyone of Groundhog Day). Given the world will not end when Greece defaults, whether in March of this year or next, let's turn our attention to a country far more significant. Chinese Electricity Consumption Fell Massively In January

Back in November of last year, when Jeff Frieden and I were putting the finishing touches on Lost Decades, we wrote: Many countries with foreign debts in their own currency reduce their real debt burden by allowing their currency to drop in value, so that foreigners get repaid in less-valuable currency.

Here is an interesting interview between Mohamed El-Erian, CEO of PIMCO, and Bloomberg Television's Betty Liu and Michael McKee this morning regarding the situation in Europe and the global economy.El-Erian said that it's "striking" that German Chancellor Angela Merkel can't agree on the "easy part" and that "unfortunately it's a mess" in Europe.

Amid epically long lines at gas stations and pervasive fear and panic among drivers in areas hit hard by Hurricane Sandy, entrepreneurs have jumped into action. Ads on Craigslist reveal that a black market for gas has emerged, with opportunists offering gallons of regular at $8, $10, even $25 apiece—sometimes with delivery included. (How nice.) Nonetheless, around the country, and even in states affected by Sandy, another trend has arisen, with gas prices dropping dramatically pretty much everywhere.