Oil hit a new record high price of $111.80 yesterday morning, but settled at $105.68 later, a drop of $4.42 for the day. While we're not yet ready to suggest that an end has come to the daily rise in oil prices, seeing the price for a barrel of crude drop
, if only for a day, is probably a bit of a relief to some. Before yesterday's drop in prices, many analysts were suggesting that the falling value of the dollar was the largest cause for the recent upward trend in oil prices. Another contributing factor are the Federal Reserve's recent rate cuts. Monday's drop in oil prices though, could possibly point to a more serious problem which has to do with the U.S. economy as a whole. Some analysts see the sale of investment bank Bear Stearns as a sign that our economy is in even worse shape than previously thought.
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[Source: CNN Money