Oil prices extended their steep losses Tuesday, tumbling below $92 a barrel as a worsening economy suggested U.S. energy demand will keep falling despite crude's return to year-ago levels.
Gas prices edged higher at the pump, topping $3.85 a gallon amid the aftermath of Hurricane Ike. However, given crude's continuing slide, retail gas was expected to turn lower within a few weeks.
As conditions on Wall Street deteriorated, evidence mounted that U.S. consumers and businesses were bracing for a protracted economic downturn that should guarantee more of the money-saving energy conservation measures of the past year: Americans will cut back on driving, airlines will keep fewer planes in the air and U.S. manufacturers will be shipping fewer products. That in turn was expected to keep crude prices down.
TVNL Comment: Oil prices drop but gas prices increas? Can you sayconspiracy? What will happen next will be conservation will cause a decrease in demand. Economic laws of supply and demand will dictate that lower prices must follow. But the oil cartels will reduce production resulting in reduced supply, thus maintaining an excuse for keeping prices high or even raising them. This brings a new meaning to the term "oil rig", or should I say "rigged oil!"