By Yael T. Abouhalkah, Kansas City Star Editorial Page columnist
UPDATED FRIDAY PM
Let's be contrarians. Now that almost all the experts think $4 gasoline is here to stay, it's actually about time for the bubble in petroleum prices to pop. Just look at the last three days. (Oh, and remember 1986.)
Since Tuesday, the spot price of oil has dropped from $145 to just under $129 a barrel -- an amazing 11 percent decline.
Just think of the billions of dollars lost by traders who bet on rapidly increasing prices.
Why is the price dropping? Demand is down because people are driving less (a perfectly rational response to high prices). Stocks of gasoline are up.
One other thing: If you want to see what just might happen, take a gander back 22 years, to the oil price collapse of 1986.
Starting at just over $30 a barrel, petroleum plummeted to $10 a barrel in six months -- a 70 percent price decline. Gasoline was under $1 a gallon.
Read the details here. It's fascinating reading -- even though the scenario might not repeat itself.
But if it does, gasoline prices will go down, too. Then we'll see how long people really driver smaller cars, scooters and more fuel-efficient vehicles.
Or maybe your model of how gasoline prices are determined is wrong, and you should research it a little so you don't go walking around in a state of mild confusion as to what's going on.