The Universal Message of Falling Oil Prices

For American consumers, the recent dramatic decline in the price of oil appears as one of the most welcome economic developments in recent memory. The same barrel of West Texas Intermediate Crude that sold for nearly $100 at the end of last year now trades for about $66 – a decline of almost one-third. Although some observers might worry that these prices are just too good to last, the very recent period of extremely high oil prices that stands as a historical anomaly.