Gas prices fall below a dollar

(Updated)

It’s been another rough day on the financial markets, this time on both sides of the border. But right now we’re going to focus on the Toronto Stock Exchange and oil prices.

The TSX closing 343 points lower tonight and it was because of a further sell-off in energy stocks, many connected to oil. Experts say the TSX is entering what they call correction territory because it’s down twelve per cent from its highs this year. A drop of ten per cent or more from recent highs is considered a correction.

The graphic shows where the TSX started the year and where it is now. The markets were at their highest over the summer, and then began fluctuating in the fall.

Right now we’re still better off than we were at the start of the year, but only by about 230 points. And with several days of triple digit losses this month already, that’s not a lot of room.

And we know part of the reason this is happening is because of falling oil prices. Crude oil was down again today, losing nearly three dollars to close at $60.94 U.S. a barrel.

It seems some people are taking advantage of the market dip. The decrease in the demand for oil has resulted in gas prices that are unfamiliar to many people.

The price drop is due to supply and demand The Organization of Petroleum Exporting Countries (OPEC) lowered their forecast by about one million barrels per day.

Marvin Ryder, DeGroote School of Business: We’re not really seeing any reason to think we’re in a recession. We’ll see that the Christmas buying season numbers are but there is no sign that people are staying home and not spending their money. I think the GDP is still going to grow. There is good news for consumers. People are keeping $20-25 in their pocket when they fill up the tank. Now the question is, what are you going to do with the savings?”