(ONNbusiness) -- In the final day of December contract trading for crude oil, prices dipped as low as $49.91 per barrel. This is marks a low that hasn't been seen since Jan. 18, 2007, when oil traded for $49.90/bbl on the NYMEX.The recent slump in crude oil prices is in part due to growing pessimism among investors in the market as a whole, seeing the Dow Jones Industrial (INDU) continue its downward trend, diving 160 points, or 2.13%, about 15 minutes into Thursday's session. And adding to the falling oil prices, the latest information from the U.S. Department of Transportation suggests that even though gas prices are lower, consumption was down for the month of September as Americans drove almost 11 billion fewer miles.
Nationally the American consumer has seen gas prices fall from $4.11 to $2.02 in a four month time span. With crude oil prices continuing to push below $50/bbl to $45/bbl, consumers could soon see $1.35 per gallon gas before the end of the year.
But will this get people back on the road? I'm not betting on it. Analyst are projecting that Americans will drive less this holiday season because of less disposable income to travel and bleak holiday sales projections. This will keep demand down through the remainder of the fourth quarter, but will also add to the slumping economy. Simply put, Americans will enjoy lower gas prices, but income will keep people at home this holiday season.
