November 18, 2006

Oil prices settle on recent lows


by Brian Turner

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Oil prices appear to have settled to new lows after huge increases over the past 18 months.

WTI December contracts were 44 cents lower to $55.82 per barrel on Friday on the New York Mercantile Exchange

A $2.50 fall on Thursday was attributed to false rumours of increased inventories, but even though unfounded, traders seem unconcerned about the state of the oil economy at present.

This could lead to a continued lower oil price compared to the recent highs in July.

The good news is that this should ease inflationary prices if sustained.

However, just as it took nearly a year to increase inflation and force interest rates up, it could take nearly as long to allow them to fall.

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Story link: Oil prices settle on recent lows

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