Oil prices plummeted to a 13-month low Friday, following ongoing dramatic stock market losses, as investors fear that the anemic global economy is having negative impact of fuel demand.
Crude for November delivery in the U.S. plunged $9.21 to $77.38 a barrel, the lowest its been since September 11 2007 when it hit a mid-day low of $77.
The Dow Jones industrials lost 128 points Friday, as it limped to the end of the wild session where it traded in a range of 1019 points during the day.
As economic concern drives people to tighten up their wallets, demand for oil continues to drop, as in the U.S. last week supplies increased by 8.1 million barrels, indicating people are cutting back on usage.
OPEC nations are starting to go into panic mode as well, calling an emergency session on November 18, a month before the regularly scheduled meeting.
It is expected they are going to decide to cut back on production in order to shore up prices, but that will be futile as problems are much bigger than they can affect.
The U.S. government and others will soon find out that they need to quit interfering in all markets and let them take care of what they know how to do. The market after all consists of people and businesses in their enormous number of interactions during this period of time; they'll know how to best respond to the government-induced financial crisis.
According to AAA, the average gas price per gallon in the U.S. is now at $3.35 a gallon.
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