______________Investing in Oil and Gas Wells

WASHINGTON - The Federal Reserve is likely to follow its bold action last week to battle an economic downturn with further interest rate reductions, although analysts are split on just what size the future cuts will be. That would mean the Fed will cut its federal funds rate, the interest that banks charge each other, by a quarter point at the conclusion of Wednesday's meeting. It would be the fifth rate cut since last September. Last week, the Fed announced a surprise three-quarter-point cut which drove the funds rate down to 3.5 percent. It was the largest reduction in this rate in more than two decades and the first change in the funds rate between meetings since the immediate aftermath of the September 2001 terrorist attacks. [|http://news.yahoo.com/s/ap/20080130/ap_on_bi_ge/fed_interest_rates_28|en]

SYDNEY (Reuters) - Oil fell on Monday, extending the past three sessions' decline, as the growing threat of a U.S. economic downturn outweighed supply worries in Iran and Nigeria. ADVERTISEMENT U.S. light crude for February delivery fell 23 cents to $92.46 a barrel by 0106 GMT. U.S oil settled down $1.02 at $92.69 a barrel on Friday, dragged down by fears of a potential U.S. economic recession. "There was some bullish news out of Iran and Nigeria that could have pushed up oil prices, but Asian markets are focusing on the health of U.S. economy for now," said Gerard Burg, a resource analyst at National Bank of Australia (NAB) in Melbourne.

Appears to be a flight to commodities.  Could this be from expected inflation and devaluation of the US Dollar if the Fed lowers interest rates?  Provide your views.
http://www.marketwatch.com/news/story/gold-tops-900-rate-cut-speculation/story.aspx?guid={EDB4C4A5-AECB-4D75-A84C-C040E69826BC}&siteid=yahoomy

Based on the article, this is going to increase the number of cars in India significantly. This car is 50% price of the next cheapest.

http://news.yahoo.com/s/ap/20080110/ap_on_bi_ge/india_ultracheap_car;_ylt=Av7PKFig94__sP9tzsy_Ce4DW7oF

[|http://news.yahoo.com/s/ap/20080110/ap_on_bi_ge/india_ultracheap_car;_ylt=Av7PKFig94__sP9tzsy_Ce4DW7oF|en]

Interesting article, particularly as OPEC has indicated that it sees no change in production levels.

WASHINGTON, Jan 8 (Reuters) - The world will be even more dependent on OPEC this year for its oil supply as production sags from key non-cartel members Mexico and Norway, the U.S. Energy Information Administration said on Tuesday.

"World oil demand will continue to grow faster than oil supply outside of the Organization of the Petroleum Exporting Countries in 2008, leaving OPEC and inventories to offset the upward pressure on prices," the EIA said in its monthly outlook. OPEC supplies about a third of global oil demand.

The EIA forecast tight oil supplies in 2008, with U.S. crude oil prices averaging $87.21 a barrel over the year, after prices briefly eclipsed the key $100 a barrel mark last week....

Link to full article here.

http://uk.reuters.com/article/oilRpt/idUKN0850109020080108