OIl Watch: 12/03/07 - 12/08/07 Prices, Causes and Effects

Closing price: $87.46 per barrel (down)
National gas average: $3.01 (down)

Expect oil prices to drop even more.

Cause(s):
1. Weak dollar (again)
Yes, this is essentially permanent. A lower dollar makes oil cheaper in countries that use other currencies.
2. Rising U.S. inventories
Sending prices down.
3. Boost in U.S. domestic production
Also sending prices down.

Effects:
Companies that use oil everyday (think: Boeing) are happy about this. As said previously, oil prices will continue to sink and eventually level out.