Gasoline prices around the United States are being cut at enormous rates. Two weeks ago, only one gas station in the entire country was selling gas for below $2 a gallon, now, just a few weeks later, 13 States have prices that low, with Oklahoma leading as being the first State to have that title. These prices have been driven by plummeting crude oil prices, though OPEC says it isn't concerned. These prices are due to the falling demand of oil due to economic slowdown in South Asia, more fuel efficient vehicles, and a large production, though the strength of the dollar doesn't hurt either.
This is similar to times like the early 20th Century when the US was driven by a war economy, and then came out with lots of war production and stockpiles, and not very much demand, leading to a drop in prices. However, these prices encourage growth and promote stability in the markets, as well as help consumers, so they should not be considered strictly bad.
Source: http://money.cnn.com/2014/12/15/news/economy/2-dollar-gas/index.html?hpt=hp_t2
For me as a driver the low gas prices have been really great. If OPEC isn't concerned then hopefully these low prices will stay.
ReplyDeleteMaddie Murphy pd 6