Oil prices slumped today as it appears there won’t be any production cuts before a regularly scheduled meeting in December. Gasoline prices receded as well and are now at prices that have not been witnessed since January of 2005. In just this month alone, the average national price has fallen 75 cents and is now down 41% from the average price a year ago.
The price for oil has been volatile this week with prices being up 9 percent Monday, down 7 percent Tuesday, and up again Wednesday by more than 7 percent. Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates, commented, “We were a little overcooked earlier this week, so it looks like we’re going to give some of it back today.” Jonathan Kornafel, Asia director at market maker Hudson Capital Energy in Singapore, said oil could test the $40 level by the end of this year.
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