Have you noticed the lower-than-normal gas prices as of late? We’re sure you’re probably thankful for them, especially when prices were up to nearly five dollars a gallon not too long ago. The good news is that these gas prices will continue to fall, given that the price of crude oil is still dropping. In fact, since July the price of crude oil has dropped 40%, leaving everyone sort of befuddled with the plummeting prices. Lower gas prices means saving more at the pump, which in turn means that consumers will have more in their pocket to spend during the holiday season.
However, the dropping of oil prices has caused a bit of worry in the U.S., considering how much impact the oil industry has on jobs and the economy. While the drop in prices has not yet had a major impact on the overall economy, there is certainly speculation that these lowering prices could jeopardize the future of the shale oil industry.
But while low gas prices are a plus for motorists here in the US, the low crude oil prices are currently putting pressure on countries that rely heavily upon the high oil prices for their economy. The low crude oil prices have already caused a recession in Russia, and have also challenged Saudi Arabia to lower it’s oil production in order to meet the current market price.
Let the battle for the oil market commence.
Source: Fortune
