Oil prices set to fall… further

Oil prices set to fall… further

OIl image

With the American senate putting a stop to the auto industry bailout plan, it looks like oil prices may continue to tumble. Experts in the states are predicting barrel prices might drop as low as $35 ($65 NZ) as a result. This comes on the heels of predictions of higher prices in the near future.

It had been previously thought that OPEC and possibly Russia would be curtailing production, which may have led to higher prices, but if the U.S. auto industry collapses, demand for oil could plummet. That would result in even lower oil and gas prices worldwide.

Oil prices started dropping on last Thursday as soon as American commodity traders heard that the Senate had blocked the bill, with barrel prices checking in at $44.76 ($82 NZ) over the weekend. Prices here in NZ can be slow at reflecting drops in the American oil market, but it remains very good news for holiday motorists.

OIl image

With the American senate putting a stop to the auto industry bailout plan, it looks like oil prices may continue to tumble. Experts in the states are predicting barrel prices might drop as low as $35 ($65 NZ) as a result. This comes on the heels of predictions of higher prices in the near future.

It had been previously thought that OPEC and possibly Russia would be curtailing production, which may have led to higher prices, but if the U.S. auto industry collapses, demand for oil could plummet. That would result in even lower oil and gas prices worldwide.

Oil prices started dropping on last Thursday as soon as American commodity traders heard that the Senate had blocked the bill, with barrel prices checking in at $44.76 ($82 NZ) over the weekend. Prices here in NZ can be slow at reflecting drops in the American oil market, but it remains very good news for holiday motorists.

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