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[bob ford <bobford79 AT yahoo.com>]

Bev; this was justed posted on the front page of CNBC.Com

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Excerpt:

Oil Likely to Remain at $50, But Don't Celebrate Yet

Kenneth Stier, Features Writer 
| 03 Dec 2008 | 10:09 AM ET 

 Oil prices are expected to stay around $50 a barrel through next year, say 
analysts, though that may not give much of a boost to consumer spending, the 
economy and stock market.

 

That’s because the the 60 to 70 percent plunge in oil prices since July is 
due to the collapse of demand as the credit crisis careens through the global 
economy. So whatever benefits lower oil prices normally bring is more than 
offset by the profound weakness in the economy.

“The negative wealth effect [among households] is far outweighing any benefit 
that lower gas price is having on discretionary spending," said Chris Hyzy, 
chief investment officer for U.S. Trust, the private wealth management unit 
of Bank of America [BAC  14.55    0.18  (+1.25%)]. "And we will not feel the 
positive effects of that until at least the second half of ‘09.” 

Hyzy added that “contrary to prior cycles”—when lower oil prices were deemed 
good for stocks—falling prices are actually “having a negative spiral effect” 
by signaling a bottom has not yet been reached. 

Even so, the savings to consumers is still substantial. ..............

http://www.cnbc.com/id/28020597





--- On Wed, 12/3/08, EarthNSky <erthnsky AT bellsouth.net> wrote:



> Gas here is about $1.67 a gallon or a bit less.
> To those of you who follow the economy, do you think prices
> will 
> continue to go down before the end of the year or do you
> think they will 
> start heading up again?
> --