There will be blood.
AP: A worsening economic climate pushed oil and gasoline prices down even further Monday, one bit of good news for consumers amid a flurry of dour economic reports.
Manufacturers reported lethargic activity numbers for October, which reached their lowest point in more than a quarter century.
The Institute for Supply Management manufacturing index fell to 38.9. Any reading below 50 signals contraction.
Demand for crude has fallen away as well.
Light, sweet crude for December delivery that had crested above $69 in early trading, tumbled $3.31 to $64.50 a barrel on the New York Mercantile Exchange.
But the biggest declines were in gasoline futures, where prices dropped more than 7 per cent in early trading.
Declining gasoline futures have led to sharp drops in the price of gasoline. The price for a regular gallon of gasoline dropped to $2.41 nationally on Monday, down more than 30 per cent from last month, according to auto club AAA, the Oil Price Information Service and Wright Express.
Oil industry analysts had believed that the booming economies of India and China would pick up any slackening of demand if Western nations went into recession. That view has weakened in recent months.
…Oil prices have fallen about 54 per cent since peaking above $147 a barrel in mid-July. In October alone, crude prices tumbled 32 per cent.
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