This summer, oil crossed the $77 threshold per barrel and since then, it has been on a steady decline. Today, it crossed $58 per barrel.
Lower prices for oil should reduce heating bills and gas pump receipts for Americans this winter.
High oil prices are a stimulus for inflation so on the surface this would appear to be good news for the economy - lower oil prices settles the economy down. However, in our country, money saved is money spent.
If the price of crude continues to drop, expect the average consumer to use their newfound 'wealth' and pump it right back into the economy. If oil does not reach a floor shortly, we could have the makings for Fed Fund Rate hike in 2007.