Crude oil prices have fallen sharply, dropping below $65 a barrel today despite OPEC's decision to cut production quotas.
Weakening global demand for crude amid the world's financial woes has softened the impact of OPEC's announcement that it's cutting production by 1.5 million barrels a day, starting next month.
Light, sweet crude for December delivery fell $3.44 to $64.40 a barrel in electronic trading in Europe.
The size of the OPEC cut reflected concerns within the cartel that the bottom appears to be falling out of the market. OPEC accounts for 40 percent of global oil supply. Crude is selling for 50 percent less than this year's historic highs because the worldwide economic crisis has put a huge crimp in demand.
So what will happen to gas prices?
As we all know, oil prices and supply affect prices at the pumps. But remember, even when oil prices are stable, we see fluctuations in gas prices.
According to the Energy Information Administration, retail gasoline prices tend to gradually rise before and during the summer, when people drive more, and fall in the winter.
The administration also states gasoline prices can change rapidly due to crude oil supply disruptions stemming from world events, or domestic problems such as refinery or pipeline outages.
(Copyright 2008 by WITN and The Associated Press. All Rights Reserved.)