According to a recent article in the BBC News, oil prices have tumbled to a seven-week low amid concerns that the slowing US economy will weaken demand. The article goes on to explain;

US sweet, light crude fell $2.23 to settle at $123.26 a barrel- more than $20 off their peak earlier in July, when prices reached a record $147.27.

A Volatile Market

The oil market is a fairly volatile one, with the prices constantly rising and falling over the past few months as traders asses whether or not there will be enough supply to meet demands. However, with increasing numbers of Americans parking their cars, using car shipping services and/or finding other vehicles which use alternative fuel or otherwise, it all boils down to one thing: Less people are consuming gasoline. Therefore, it should only make sense that the price of gas has fallen because demand isn’t as high.

The falling gas prices may also help provide some relief in other parts of the struggling United States economy, such as the housing market. There are some who speculate that a drastic decrease in gas prices and a return to the ‘good ol’ days’ when gasoline was $2 bucks a gallon would really help to improve things locally. I’m not so sure that lower gas prices would really help out all that much at this point, however. Then again, I wouldn’t argue if they did lower. Goodness knows it would save me some major money at the pump that I could spend elsewhere- like on groceries and bills!

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Tags: Auto Transportation //