Oil falls to lowest level in 6 months [View All]

[sinkingfeeling]

http://www.usatoday.com/money/industries/energy/2011-08-04-oil-prices-august-4_n.htm

NEW YORK — Oil posted its biggest one-day drop in three months as investors worried about another recession.

Crude prices tumbled nearly 6 percent Thursday, outpacing a broad sell-off on Wall Street, where major indexes were down more than 4 percent.

This should be good news for motorists. If oil holds at these lower levels, the drop could be felt within days at gas pumps across America. Fred Rozell, retail pricing director at Oil Price Information Service, said the recent slide in oil could cut between 20 to 35 cents from a gallon of regular over the next month. The national average is currently $3.703 per gallon.

"You could see some sizable declines at the pump," Rozell said.

Thursday's drop in oil should bring down wholesale gasoline prices almost immediately. That usually is followed by a drop at the pump. Retail station owners, operating on slim profit margins, are reluctant to pass those savings on to consumers, but competition among stations eventually forces their hand