Friday, October 17, 2008

Falling oil prices give consumers a break

It might not prompt Americans to spend, but the drop in oil prices -- now below $70 a barrel -- could help many stay afloat.

Oil prices coughed up all of their 2008 gains and then some Thursday, stopping only after crashing below the $70-a-barrel barrier, a level not seen since the summer of 2007.

The betting money is that oil still has much further to fall, perhaps as low as $50 a barrel before the end of the year.

Economists say that would give beleaguered U.S. consumers the rough equivalent of a new economic stimulus package, dragging retail gasoline prices back down as low as $2.20 a gallon nationally. Natural gas and heating oil prices also are cratering, which would help with winter heating bills.

Read full story Los Angeles Times

Posted by Personal Injury Lawyers in Phoenix, Arizona

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