Energy Crisis Fears May Be Moving to the Back Burner

Now then. There was an energy crisis sitting around here somewhere.

Believe it or don't, but an increasing number of people think that the worst of the country's energy problems may be on the wane (save for problems in a particular large state out West). Oil inventories increased again this week, to the surprise of many, and the three-week decline in the price of oil futures reflects the expectation that the peak is safely in the past.

Analysts expect crude oil prices to drop to $22 to $25 a barrel later this year. Crude oil futures lately traded at $27.72, down from $30 on May 22. A decline in prices to those levels wouldn't hurt producers and refiners terribly, but it would ease the burden of consumers. High heating and fuel costs were a significant reason why discretionary spending fell last year. It should continue to hurt spending, but to a lesser extent. ...