Sun, Jul 05, 2009

Business

If you're not queasy, you're not looking

Dow puts in another wild day; oil under $70
By Tim Paradis
The Associated Press
Tucson, Arizona | Published: 10.17.2008
NEW YORK — Wall Street turned in another stunning finish Thursday and extended its unprecedented streak of volatility — this time, to the upside — as investors spent a fractious session struggling with fears about a recession but giving in to a last-hour wave of buying.
The Dow Jones industrials ended up 400 points, after falling 380 early in the session.
One of the factors in the surge was another steep drop in oil prices. Crude dropped below $70 a barrel, reaching a 14-month low of $69.85, after the government reported massive increases in U.S. crude and gasoline supplies.
Investors took the news as more evidence that a credit crisis and a shaky economy are curbing demand for oil.
At the pump, a gallon of regular gasoline shed another 4 cents overnight to a new national average of $3.084, according to auto club AAA, the Oil Price Information Service and Wright Express. At this rate, the national average could fall below $3 by the weekend — a level not seen since Feb. 16.
"It's dropping like a rock," said Fred Rozell, retail pricing director at the Oil Price Information Service in Wall, N.J.
AAA reported Thursday the largest one-week drop in nationwide gasoline prices since it began tracking prices in 1991. The $3.08-per-gallon average is down 32 cents from last week.
In Arizona the price dropped for the fourth week in a row. The state average is $3.17 — a drop of 15 cents from last week and the largest single-week decrease in the state since 1999, according to AAA-Arizona.
Tucson drivers continue to pay the least at $3.05 per gallon.
Analysts expect Wall Street's volatility to go on, and warned that just as Monday's 936-point surge was overdone, there was little reason to trust that Thursday's gains would hold.
● Star reporter Dale Quinn contributed to this report.