The price of oil is low and likely headed lower reports the Associated Press. As the stock market experienced turmoil last Monday, the price of a barrel of oil dropped to a price not seen since early 2008.Holding steady around $90 a barrel this week, the prices which neared $150 midway through the summer now seem to belong to the distant past. As fears surrounding the market for credit continue to grow, oil prices are likely dropping in part because continued growth seems unsustainable, even in Asia’s developing countries.
"The market is finally acknowledging that this credit crisis is a global phenomenon and that will equate to lower world oil demand in the future," Phil Flynn, analyst at Alaron Trading Corp. in Chicago, tells the Associated Press. "People thought the crisis would be contained to the U.S. and we'd see oil demand in China and India continue to grow. Now that just doesn't seem possible."
Though oil prices are falling in large part due to bad economic news, the lower prices do translate into at least a little good news for consumers.
The article reports that according to AAA, the average price of a gallon of gas in the United States is currently about $3.50. Average prices topped out at over $4.10 this past July, so the lower prices should make filling up less painful.
In light of poor stock performance and declining home values, however, the lower gas prices may provide little relief.
Here's the complete article.
--Bridget O'Sullivan
No comments:
Post a Comment