Oil prices and our future.

Oil prices and our future.
Rachael Morgan 10-24-08 1:48pm
As the economy continues to decline, the government is trying to find ways to drive the market up to bring stability to the economy once again. In an effort to do this the “International oil cartel agreed Friday to cut daily production by one point five million barrels in a move to drive up prices on the international market- and, at the gas pump.” But even with this move crude oil price dropped five percent on Friday and are projected to be near $ 64.40 in December. “The financial crisis is already having a noticeable impact on the world economy, dampening the demand for energy…and oil in particular.” America’s weak economy and financial crisis is having a huge impact on other countries. Americans are not only spending less and less money on imported products, but less at the pump. While this is forcing oil prices to drop, on the other hand it is steadily weakening the economy. While Americans are looking for the instant satisfaction of saving at the pump, if this continues we are surely headed towards the next depression.
“Over the last four weeks, the gasoline demand fell four point three percent from the same period last year, according to industry analysts. Distillate fuel demand was down five point eight percent, and jet fuel demand was down nine point two percent.” These huge slides in demand are not only affecting those immediate markets such as gas, trucking companies, and airlines, but also that of the hospitality industry and all food service industry. Declining oil prices are affecting almost every part of our falling economy, and unless it increases we are looking at an even larger unemployment rate in the very near future.




Sources cited http://www.foxnews.com/story/0,2933,443913,00.html