Slide in oil prices set to fuel US stocks rally

THIS week, US stocks are likely to continue their record run as the traditional end-of-year rally gets an extra lift from a dramatic drop in petrol prices.

The national average price of petrol has fallen every day now for about a month-and-a-half to US$2.91 a gallon (3.8 litres) on Friday, according to AAA, the automobile association that provides roadside repairs and driving data. A few months ago, most Americans had reckoned that sub-US$3 gasoline was a piece of history.

Last week, Wal-Mart was the first major institution to state that its customers were likely to spend more on holiday items at its store because of the break on petrol prices. The world's largest retailer by sales also said it would run a promotional event for the entire Thanksgiving week instead of concentrating the big promotions on "Black Friday".