You may recall I suggested Oil was going to drop, bigtime.

Here’s a reminder.

The AP business wire is now reporting the bottom’s falling out.

The reason: Simple economics.

“Emori said the current oil market remains “highly exaggerated,” and that if prices followed market fundamentals, they should hover around the low $40 range.

“Although demand still remains strong, supplies are normal, as seen from the U.S. reports,” he said. “Even the current spare capacity is not that tight.” “

Now, I should say, that the Federal Government is saying that prices for actual gasoline will remain high, but the price of crude has little to do with it.

The U.S. Energy Information Administration significantly raised its forecast Thursday for gasoline and crude oil prices during the summer driving season, citing strong demand, tight refining capacity and new changes in gasoline specifications.

Again, I mentioned that several times, too. So did others.