Oil's Slide as Chaotic as Its Rise

Plunging crude prices can be almost as disruptive as their rise
By Jim O'Neill,  Newser Staff
Posted Sep 17, 2008 10:00 AM CDT
Oil's Slide as Chaotic as Its Rise
In this photo combo, the price board at gas station in Redwood City, Calif. is shown on June 9, 2008, left, and Sept. 11, 2008, right.    (AP Photo/Paul Sakuma)

Crude oil prices have fallen 38% from their July high of $147.27 a barrel, and the decline is causing nearly as much consternation around the world as its meteoric rise in the first half of the year, reports the Washington Post. Oil-dependent governments are worried about revenues and forecasters are scurrying to revise outlooks. while alternative-energy companies see their prospects decline.

The world has seen its energy costs drop some $4 billion a day. Though still high, the prices have energized auto and airline stocks. For the US, a lower oil import bill has been fueled by decreased consumption, and that could mean an easing of inflation, a narrowing trade deficit, and a stronger dollar.
(More crude oil stories.)

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