Oil prices continue to spiral downwards

For some reason I’m quite intrigued by the oil prices and how the economy reacts to it.

From my previous posts on oil price fluctuations, you can see that it was during mid July this year that prices peaked at US$147.50 per barrel. The current oil prices are below US$50 per barrel now, at US$48.77 per barrel.

That’s a great whopping one third drop in price in just under 6 months. I was filling up my car with petrol yesterday and I’m amazed to see the dollar meter going up at a much slower pace.

Heck, I’m even astounded that I got more liters than the dollars I’m paying for. I’ve noticed in Sydney, oil prices have cracked below the A$1 per liter mark. I think the last time we saw this was a few years ago.

It is speculated that the demand for oil will continue to fall as the economy is still crashing with unemployment rates rising and spend decreasing due to confidence levels.

Let’s hope the Arabs (OPEC) don’t cut production too much to the point that oil prices rise again despite the failing economy. Their black gold glory have come to an end.

For now anyways.