Crude falls as investors focus on a weak demand outlook. OPEC official says the cartel will hold another emergency meeting.
Oil prices fell Friday as investors took cues from from the selloff in stocks as an indicator of weak global demand for energy.
Light, sweet crude for December delivery fell $1.20 to settle at $57.04 a barrel in New York. The contract briefly fell below $56 to a session low of $55.69 a barrel.
Oil traders have been tracking global equity markets as a means of assessing the severity and duration of the economic downturn and its impact on energy demand. As a result, oil prices tend to rise and fall in tandem with world stock indexes.
For the full article click on the link:
http://money.cnn.com/2008/11/14/markets/oil/index.htm
Comment:
Consumers are probably very happy about the fact that gas prices has plummeted. Especially in a time where the economy is going bad, this seems like a little financial relief for many car owners who depend on a vehicle in their every day life.
But on the other hand, decreased gas prices may tempt many people to drive even more.
Since crude is becoming rare so fast, gas prices should not fall. They should stay high in order to put the automobile industry in even more pressure to build fuel efficient cars or cars with alternative energy. The decrease of the gas prices seem like a step in the wrong direction concerning our moral obligation to preserve a clean environment as a legacy to our next generations.
Oezguer (Oscar).
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2 comments:
In response to this article and the ideal that consumers may enjoy the price relief:
Gas prices and unemployment actually are negatively correlated. As gas prices begin to plummet, it's actually in response to a greater amount of unemployment. As people lose jobs and money, they are less likely to travel or purchase more expensive goods requiring transportation. As the consumer is weaked, gas prices fall due to a forward outlook proposing less demand for the gas and its products.
weakened**
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