Oil prices plunge to 13-month low on global slowdown

Stevenson Jacobs, The Associated Press NEW YORK - Oil prices plunged in another violent sell-off Friday, briefly tumbling below US$78 a barrel as investors grow more pessimistic about the prospects for resolving a mushrooming global economic crisis. A barrel of oil hasn't been this cheap in 13 months. The steep losses came as Wall Street extended its staggering decline for an eighth straight day and headed for its worst weekly drop ever. The Dow Jones industrial average was down more than 500 points in mid-afternoon trading. "Oil is mirroring the stock market right now. There's a total lack of confidence. It's fear driving more fear," said Phil Flynn, energy analyst at Alaron Trading Corp. in Chicago. Light, sweet crude for November delivery fell $8.01 to US$78.61 a barrel on the New York Mercantile Exchange, after earlier... [read full story]