Yesterday we reported that oil prices dropped about 3%.
Well, today they declined another 1% for a two day fall of 4%.
Assuming that oil prices keep falling, which I expect them to do, although obviously not at the recent pace, that should make consumers feel better about things when filling up the gas tank in the spring and summer months.
And that in turn could provide a needed boost to consumer spending and economic growth as well.
Oil ends below $94 for two-session loss of over 4% says this about the recent action in the oil market:
"Oil futures fell below $94 a barrel on Thursday
to tally a two-session loss of 4.1% as comments from the European Central Bank's
president on downside risks to the region's economic recovery dulled prospects
for energy demand.
Traders awaited Friday's release of nonfarm payrolls data for
a hint on the progress of recovery in the U.S.
May crude fell $1.19, or
1.3%, to settle at $93.26 a barrel on the New York Mercantile Exchange."
This will help keep interest rates low as inflation worries aren't a concern.
And lower energy prices should provide a boost to both consumer spending and consumer confidence as well.
Now let's hope for a decent report on March unemployment tomorrow morning. 200,000 new jobs and an unchanged 7.7% unemployment rate are the consensus forecasts.