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Oil Prices Drop 10% After House Rejects $700 Billion Bailout Bill

Posted in Fuel, Gas Prices, Newsworthy, Oil Industry by Suzanne Denbow | September 30th, 2008 | Leave a Reply |

Yesterday, after the House of Representatives rejected the $700 billion dollar bailout plan designed to rescue the U.S. finance industry, the Dow Jones plunged a record 700 points – the biggest single-digit loss in history. There was, however, an unexpected bonus to the defeat that went largely unnoticed amid the chaos: the price of crude oil dropped an entire 10%. Following a trend sparked last week when U.S. November crude dropped 11.8%, yesterday November crude reached a session low of $95.04 a barrel, the second biggest drop since April 23, 2003.

The price of crude oil began taking a [relative] nose dive last week, and within the past seven days has fallen a total of $25 per barrel, or 20% overall. Today, however, the New York Mercantile Exchange recorded a $1.31 increase for November crude, elevating it to $97.68 a barrel. Market analysts don’t believe the slight upswing is indicative of a growing trend, and actually predict that crude oil will fall to $80 a barrel through the course of the next six months – possibly even falling as low as $60 a barrel.

What this means to you: Now, it won’t be quite so costly to refuel the vehicle you and your family will be living out of shortly.

[News Sources: CNNMoney.com & AutoNews.com]

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