Money Talks | 27.11.2008 | 00:30
Could Cheaper Oil Spell Disaster Long-Term?
Cheaper oil brings a little relief for consumers, but joy at lower petrol prices could prove short-lived.
Over the summer, it seemed you had to take a loan out every time you wanted to fill your car up. Things have eased up a little recently as fear of a worldwide recession has sent the price of oil plummeting. For the first time in 2 years, the price of crude oil fell to below 50 dollars a barrel last week, the lowest level since January 2005. And that’s around a third cheaper than in the summer. But even though this means a little relief for drivers at the petrol pumps, consumers should not be celebrating too soon about the new low prices: The long-term effects could be dramatic.
Report: Catherine Graue
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