9-29-08 by dugan
The price of oil fell today by a slightly higher percentage than the Dow’s 7%, dropping $10 a barrel to $96. Of course, there’s another way to look at it–if that pattern continued, and the Dow fell to 8,000, crude oil would be about $70 a barrel. Crude was at $70 just last year. The last time the Dow Jones Industrial Average was at 8,000 was in March 2003.
So, given plummeting demand, the price of oil has a long way to go before it’s in line with a historical market.