Dec. 08--The OPEC cartel's decision last week not to cut production helped the price of crude oil tumble to near a seven-year low on Monday.
American motorists are feeling the benefit at the pump, with the average price of a gallon of gas also falling to its lowest level since 2009.
Nationally, the average price of a gallon of regular unleaded gas fell to $2.03 Monday, according to the AAA. In the Chicago area, on average, a gallon cost 4 cents more, but that $2.07 was still the lowest price in nearly seven years.
Energy companies -- which have laid off more than 90,000 workers this year -- continue to be hit hard by the oil supply glut. U.S. crude fell $2.32, or 6 percent, to close at $37.65 a barrel on the New York Mercantile Exchange, its lowest price since February 2009. Natural gas prices also fell. Among energy stocks, Consol Energy plunged $1.17 a share, or 15 percent, to $6.55 and Chesapeake Energy lost 29 cents, or 6 percent, to close at $4.26.
Airline stocks, however, did well as investors anticipated that lower fuel costs would help the companies fatten their profit margins. JetBlue Airways jumped $1.01 a share, or almost 4 percent, to $26.49. Delta Air Lines gained $2, or more than 4 percent, to $51.78.
OPEC ramped up production in the middle of 2014 in a bid to hurt upstart U.S. shale oil producers, who need higher oil prices to cover their costs. It had been expected to soften its stance at a meeting in Vienna last week, but member nations could not agree on a deal to cut production.
Tribune wires contributed.
kjanssen@tribpub.com
