Falling Oil Prices Lead to Lower Gasoline Prices
May 15th 2013 7:05AM
One of the ironies of the current economic situation is that slow economies around the world have pushed the price of oil lower, and consequently with it, the future price of gasoline. The bad news about European gross domestic product (GDP) knocked crude well below $94. News that shale oil will substantially increase global supply in the next five years also added pressure.
Low gasoline prices are supposed to help consumer spending, which many economists argue is two-thirds of GDP. If that is so, the consumer's discretionary income will continue to rise, at least among those who have cars.
The national average price of a gallon of regular was only $3.588 yesterday, according to the AAA Fuel Gauge. That compared with $3.727 a year ago. With the exception of Hawaii, Alaska and California, no other state has an average price above $4.
The reasons for oil prices to continue to drop grow almost every day.
Filed under: 24/7 Wall St. Wire, Oil & Gas Tagged: featured