Oil Prices Fall To Lowest Level In 20 Months.
The New York Times (11/12, B1, Mouawad) reports that oil prices "fell to their lowest level in 20 months on Tuesday, despite efforts by the OPEC cartel to stem the slide, as weak economic growth continued to reduce consumption around the world." Lower energy prices "are providing some welcome relief for struggling consumers, but a 59 percent decline in oil prices since their summer peak also shows how radically the prospects of the global economy have darkened in recent months." Crude oil futures "on the New York Mercantile Exchange settled at $59.33 a barrel, down five percent. Prices have plummeted since hitting a peak of $145.29 a barrel in July."
The Los Angeles Times (11/12, White) adds that on Monday, "news of China's $586-billion stimulus package seemed very bullish for the oil market and likely to help kick-start the global economy. But today, the sentiment reversed direction on speculation that the global economy must be much worse than previously believed if even the Chinese government has to step in to stimulate growth, analysts said." Following oil's "cue, retail gasoline prices continued to slide. Nationwide, a gallon of self-serve regular gasoline sold today for an average of $2.22, down by $1.03 in just the last month, according to AAA's daily price survey."
The Wall Street Journal (11/12, Baskin) points out that "there is heavy betting that" crude oil "will fall further as traders expect the global economic slowdown to resist government efforts to spur growth." The AP (11/12, Kennedy) also reports the story.
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