Filed under: Economy, Energy, News the Media Doesn't Want You to Hear, Uncategorized | Tags: Good Economic News, OPEC, Price of Oil
Last November, a barrel of light sweet crude oil was getting about $147 in futures trading. Yesterday, oil was fetching $69.85 a barrel, down $4.69 a barrel for the day. A report from the Energy department said that over the last month, domestic oil demand has fallen to its lowest level since June 1999, at 18.6 million barrels a day. The economic downturn means less crude is needed moving the economy.
A lower price for oil will help consumers, lowering winter heating bills and the price of gas at the pump. One of the chief contributors to inflation over the past year has been the rise in oil prices, and declining prices will ease the inflation threat.
OPEC, however, is not happy. Member states will be meeting next week to discuss a production cut in an effort to keep prices firm. Nigeria and Venezuela have grown heavily dependent on oil. We will see.
But it’s nice to know that there are some bright spots in the economy.