Oil Prices Making Historyby Tim Manni
Not only are oil prices dropping to historic lows, they remain one of the only portions of our economy putting money back in consumers’ pockets. Oil futures closed the week down $2.85, or 6.5%, to $40.81 — the largest weekly decline recorded since 1991. Crude-oil futures finished the day down to levels not seen since December 2004. A strengthening dollar as well as November’s unemployment report were the main proponents that continued to spiral prices:
“The fall in employment was brutal,” said James Williams, an energy economist at research firm WTRG Economics. “Folks without jobs drive less, and those in fear of losing their jobs are minimizing expenditures.”
The Organization of the Petroleum Exporting Countries, which controls about 40% of the world’s oil production, chose not to reduce production at its meeting in Cairo last weekend. However, the oil cartel will meet next on Dec. 17 in Oran, Algeria, where production cuts may be announced.