Pump prices continued their unprecedented decline in California and much of the nation over the last week, reaching levels not seen since the early weeks of 2004, the Energy Department said Monday.
The new lows came on an odd day in the commodities markets in which the same threat of further production cuts this week by the Organization of the Petroleum Exporting Countries was seen first as bullish and then later on as bearish for oil.
Crude oil futures for January delivery fell $1.77 to close at $44.51 a barrel on the New York Mercantile Exchange after trading as high as $50.05 during the day.
“The market rallied early on from the fact that OPEC was promising more cuts in production, but then the thinking changed that this was only going to hurt demand with the global economy already faltering,” said Phil Flynn, vice president and senior market analyst for Alaron Trading Corp. in Chicago.
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