U.S. Gas prices Drop as Drivers Cut Back
This article basically talks about the currently dropping oil prices in the Unites States. With the badly damaged economy, consumers are now trying to save money by either not driving at all, and using substitutes such as trains and buses, or by simply decreasing their driving, which consequently drops their expenditure on oil. Furthermore, the dangerously high unemployment rate only further decreases the demand for oil, hence causing the price decrease of oil in U.S.
However, when the refiners cut their production of oil, they might be cutting some of their costs, but they are also hurting themselves in the long run. This is because by decreasing oil production, the refiners have to decrease their working force. This only causes further unemployment in the United States, wich means that more consumers will neglect the consumption of oil. This would mean that the oil prices would have to be dropped even further, causing a further decrease in the working force of the refiners. Overall, this chain reaction, or a cycle, will only further damage the U.S. economy.
http://money.cnn.com/2009/11/22/news/economy/dberg_gas_prices/index.htm
