Cheaper oil prices to boost economy

The cost of a 42-gallon barrel of foreign crude oil to U.S. refiners has tumbled in recent months to a five-year low. For one benchmark North Sea crude, the spot market price has fallen about 25 percent since October, from $17.90 to $13.50. Both consumers and businesses _ except those involved in oi...

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Bibliographic Details
Published inLas Vegas review-journal
Main Author John M. Berry. Washington Post
Format Newspaper Article
LanguageEnglish
Published Las Vegas, Nev Las Vegas Review - Journal 01.01.1994
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Summary:The cost of a 42-gallon barrel of foreign crude oil to U.S. refiners has tumbled in recent months to a five-year low. For one benchmark North Sea crude, the spot market price has fallen about 25 percent since October, from $17.90 to $13.50. Both consumers and businesses _ except those involved in oil and gas production _ are reaping benefits. DRI economists Jill Thompson and David Wyss told their clients that such a track for oil prices would mean stronger growth with lower inflation. Their scenario also assumes various health care reform efforts will slow the rate of inflation in that area. "This scenario allows the best of both worlds _ stronger growth and lower inflation," the economists said. "The combination is not just possible, but increasing in probability."
ISSN:1097-1645