The Wall Street Journal is reporting that the price of oil took another hit today, stemmed by weakening demand and declining inventories.
A huge factor in this sudden drop-off is of course Hurricane Gustav’s impact on the Gulf Coast, home of 26 percent of the nation’s bulk oil production, and is further complicated with the imminent threat of Hurricane Ike. Ike is headed toward Texas now, and poses a danger to refineries in the Corpus Christi area.
Currently, oil prices are trading at their lowest price in five months, and look to fall below $100 a barrel in the foreseeable future. Experts remain divided on what this will mean for what long-term effects the market will suffer, but reports continue to show a sharp decline in demand for oil.