Archive for December 5th, 2008

Amid the economic gloom and doom that has saturated the media over the past several months the price of a barrel of crude oil has continued to decline since sky rocketing to a $150 per barrel during the past summer and is now approaching $40 per barrel, the lowest level in four years. 

Just a few months ago, consumers were faced with the prospect of ever spiraling fuel costs as the price of gasoline topped $4 per gallon. The increase in fuel cost created a natural transfer of  purchases of other consumables to offset the increase in gasoline prices. This was further compounded by the dramatic decline in the stock market, the collapse of Lehman Brothers and the advent of the TARP to prevent a potential collapse of our financial system. Politicians hit the airwaves advocating numerous alternative fuels and bemoaning the transfer of wealth from the western economies to the OPEC nations and analysts spoke of  the price of crude reaching $200 per barrel by the end of this year.

Retailers, investors and consumers have been  preparing for the worst possible scenario for this holiday shopping season as economists emerged from all areas of the globe pontificating on the imminent global economic collapse. The media has continued to hype the decline in the economy at every given opportunity further eroding consumer confidence. 

With gasoline returning to below $2 per gallon, consumers should gain comfort at the pump and combined with the exceptional incentives offered by retailers should allow for some extra cheer during this holiday season. Even Santa could afford to rest Rudolph this year and fill the tank on his SUV.

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