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Tuesday
Aug092011

Along with Stocks, Crude Oil Prices Are Also in Freefall

Comstock Images/Thinkstock(WASHINGTON) -- Just two weeks ago, oil prices were headed upward, to more than $100 a barrel for crude.  But by the end of the day Monday, the price of oil was down to about $81 a barrel and could fall lower than that.

The downgrading of the U.S. credit rating by Standard & Poor's, fears of another recession and volatile world markets have sent oil prices plummeting.  Ironically, major forecasting agencies were predicting an upswing of prices due to global demand surpassing supplies.

In one sense, falling oil prices are bad because they reflect a world economy in crisis.  On the other hand, it might mean that motorists in the U.S. could soon be paying a lot less for gasoline, provided they have any money left to spend once Wall Street is done tanking.

Copyright 2011 ABC News Radio

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