After credit crunch we might
have oil crunch. World oil prices may easily fall below
$50 a barrel or even further to $35, but it
may recover
quickly.
With gasoline prices slowly declining, another half
price holiday sale may be coming soon. Oil has now fallen more than
60 percent from July's record $147.27 a barrel.
The national average price for regular gasoline fell
overnight, down 2.6 cents to $2.152 a gallon, according to according
to auto club AAA.
The Commerce Department Friday reported the largest
ever October plunge for retail sales and a sharp drop in business
inventories. The sales decline was led by a huge drop in auto
purchases. That means fewer vehicle miles driven, that led to job
losses or saving money for tougher times that may come.
Major automakers are now seeking portion of the
bailout money to help them stay in a business. The amount of $25
billion is considered by government for all major automakers.
OPEC, which produces about 40 percent of world
supplies, has said it may cut production by the end of this month if
prices continue to fall.
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