Oil Prices are Starting to Fall
Oil ebbed to a five-week low around $68 on Thursday on signs that high energy costs were firing inflation and dampening demand in top consumer the United States.
Commodities, stock and bond markets reeled on Wednesday after the United States reported a steep rise in consumer prices last month, driven by a big jump in fuel costs.
While other financial markets steadied on Thursday, U.S. crude continued to fall. By 1528 GMT U.S. crude was down 14 cents at $68.55. London Brent was down 27 cents at $68.77.
Oil has been in decline since hitting an all-time high of $75.35 on April 24. Some investors say the drop is no more than a pause for breath in a rally that has lifted the cost of a barrel of oil from $20 at the start of 2002.
“I certainly think the current jitters are no more than an overdue correction and pause for breath, and the bull market has plenty of years in it yet,” said Mark Mathias, chief executive of London-based investment specialist Dawnay Day Quantum.
I would be interested to see if this will actually make a difference at the pumps. Keep an eye on this one… usually it takes about 3 months to see the drop in gas prices… if at all.