Oil prices continue to fall amidst Senate's passage of Obama's $838 billion recovery plan.With Government plans in place to improve our dis-heartened economy, The Dow Jones industrials lost 300 points and crude is still trading below $40 a barrel. Alaran Trading Corp Analyst, Phil Flynn, says "People are running to gold as a reaction to Monday's speech and are running away from the stock market. And of course that's pressuring the oil down."
Associated Press reports that a new Treasury Department program will make more loans available to consumers and businesses. Funding would be up from $20 billion to $100 billion, administration officials report. Although things could be looking better, nothing has been set in stone.
Despite recent Organization of Petroleum Exporting Countries cuts, there is still plenty of oil in the market due to our weakened economy. Platts, the energy information arm of McGraw-Hill Cos. reports that by Wednesday, U.S. crude stocks could grow to 30.4 million barrels. Motorists however, will not see these savings. Retail prices at the pump will continue to rise. Sinking demand is causing refiners to trim down production. Gas prices have risen 13.6 cents since last month.
The good news? Gas is still less expensive than last summer.
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