oil prices

As the world loses confidence in the foundations of its economic system, the silver lining may be that oil prices are about to get a whole lot cheaper.

Oil prices plunged to a 12-month low Friday as investors worried that the weakening global economy was driving down demand for fuel worldwide.

Expect nothing but volatility for oil prices over the next year or two - with the fate of the global economy largely dictating whether crude will fall to $50 or shoot up to $150 a barrel.

A key measure of the nation's manufacturing activity fell in August, reaching a level that indicated contraction in the sector even as falling oil prices helped lower some business costs.

As Hurricane Gustav neared the Gulf coast Monday, oil prices fell after spiking more than $3 on Sunday as the world oil market waited for the potentially devastating storm to come ashore.

Last week falling oil prices looked unstoppable. The last few days have seen a halt in that slide. Still with prices well below the record set in July and a shaky world economy threatening demand, the question remains: How low can oil prices go?

Oil is an especially volatile commodity this year. First it soared to record prices, now it's going the other way.

Host Kai Ryssdal asks an oil expert to help sort this out.

Oil prices could be lower than previously expected next year, as recent trends suggest that supply and demand are coming into balance, according to a government report released Tuesday.

The central bank meets today and faces the tough dilemma of weighing inflation risks against economic health; economists expect rates to stay at 2%.

Meanwhile, stocks jump as oil prices continue to slide and financials rise. Procter & Gamble reports a rise in profit.

Oil prices are falling sharply, and that's good news. But not nearly as good as you might think.