Falling oil prices are now providing the only ray of hope on the economic horizon.

And it could well be good for the auto industry.

Prices have tumbled over 50 percent from their high of $147 a barrel in July to around $70 a barrel at the end of last week.

That's about as astonishing as their run-up earlier this year. And it could give a boost to the economy - and that includes you and me - just when it badly needs it.

This certainly occurred to me as I drove the 30 miles into work the other day. Having just moved out of a 22 miles per gallon Volvo wagon and into a 28 mpg VW Jetta, I was already saving a bunch of money on fuel.

But as gas prices edge down, those savings will be compounded - although in these historic and volatile times nothing is certain for very long. Certainly, I cannot imagine getting into a gas guzzler again.

But as the drop in fuel prices leads to savings in the household budget, auto dealers could see a few more faces on the lot looking for a new vehicle.

Why are oil prices falling? Because the economic slowdown stemming from the global financial crisis is cutting demand for oil and other commodities such as concrete and steel.

The price drop has prompted the Organization for Petroleum Exporting Countries (OPEC) to hold an emergency meeting in Vienna next week to discuss the possibility of cutting production in order to stabilize prices.

And the move by OPEC should serve as a lesson for us all. Oil exporting nations have been reaping greater and greater profits as the price of oil has gone up. You can just imagine how such a sudden drop in the price has affected their budgets.

In the same way, while gas prices have fallen about $1 a gallon in the last few weeks, we should not be lulled into getting back into SUVs and other big vehicles. Better to live with the savings from more fuel efficient cars - to say nothing of the benefits to the environment - and to appreciate that this winter's fuel bills may not be so devastating after all.

And hopefully the decline in fuel prices will help get the wheels of industry and commerce moving again.

- Peter C.T. Elsworth