BILL HEMMER, CNN ANCHOR: Time now for a closer look at the following oil equation, and the many factors that go into what we pay. For a closer look at the trickle down economics, we turn to CNNfn reporter Peter Viles live in New York. Peter, what are they saying?</s>PETER VILES, CNN CORRESPONDENT: Good morning, Bill. We do have a little bit of good news. Here in New York, the oil that trades here, Light Sweet Crude futures are down about 76 cents this morning at $34.63 a barrel. Still a very high price, still near a 10-year high. The main problem here: OPEC has said they can live with lower prices. They wouldn't be upset if prices dropped to $25 a barrel. The problem is, they remember two years ago, when prices were $11 a barrel, and nobody in the United States was saying: Geez we ought to pay more for oil. So their concern is that oil prices could fall below the level that they think is acceptable. So that's a lot of the dynamic here is OPEC's concerns about a floor here.</s>HEMMER: Major roller coaster over the past 24 months, when you look at the whole oil industry. When is it, Peter, knowing that we can forecast months in advance the following trend, when is it when we see to see it really hurt the U.S. economy, if at all.</s>VILES: Well, right now, it may even be a slight positive because you remember the Federal Reserve is trying to slowdown the economy, trying to tap the breaks a little bit, and these high oil prices help them do that. But if oil prices continue to rise, and they start to slow down production of businesses, they start to add to the price of anything that is produced, as the production costs energy, and inflation is usually the enemy of an economic expansion. When you have a recession it is usually caused by inflation. So there is an increasing chance of a recession, if get higher oil prices continuing for months and months.</s>HEMMER: All right, Peter, Peter Viles, live in New York, thank you.
Oil Futures Down on the Day, Still Near 10-Year High