Drop in gas prices benefits US drivers, economy
Source: AP-Excite
By JONATHAN FAHEY
NEW YORK (AP) - A sharp decline in the price of oil this month is making gasoline cheaper at a time of year when it typically gets more expensive. It's a relief to motorists and business owners and a positive development for the economy.
Over the past three weeks, the price of oil has fallen by 9 percent to $89 a barrel. That has helped extend a slide in gasoline prices that began in late February. Nationwide, average retail prices have fallen by 27 cents per gallon, or 7 percent, since Feb. 27, to $3.52 per gallon. Analysts say pump prices could fall another 20 cents over the next two months.
The price of oil is being driven lower by rising global supplies and lower-than-expected demand in the world's two largest economies, the United States and China. As oil and gasoline become more affordable, the economy benefits because goods become less expensive to transport and motorists have more money to spend on other things. Over the course of a year, a decline of 10 cents per gallon translates to $13 billion in savings at the pump.
Diesel and jet fuel have also gotten cheaper in recent weeks, which is good news for truckers, airlines and other energy-intensive businesses.
FULL story at link.
Read more: http://apnews.excite.com/article/20130422/DA5QQFP01.html
In this Friday, April 19, 2013, photo, gas prices are displayed on in Montpelier, Vt. A sharp decline in the price of oil this month is making gasoline cheaper at a time of year when it typically gets more expensive. Its a relief to motorists and business owners and a positive development for the economy. (AP Photo/Toby Talbot, File)
onehandle
(51,122 posts)Omaha Steve
(99,069 posts)Spitfire of ATJ
(32,723 posts)Watch the original "Die Hard" again...
(1988)
DJ13
(23,671 posts)But hey! Its .27c lower than it was!
(But far higher than it should be.)
antigone382
(3,682 posts)Climate change, ocean acidification, catastrophic mining and extraction processes...it has to stop. It has to stop NOW. We need to be doing everything in our power to make it stop. As much as I know they affect people like myself on tight incomes and with few opportunities to work close to where they live, gas prices are really the least of our worries. We are on the verge of mass die-off.
Moostache
(9,895 posts)They figure that if we have a massive die off that the wealthiest will survive - based on them being so uber-awesome I guess - and that after the "surplus people" are gone, there will be plenty of gas left for them to use at their leisure...
They're in for a rude ass awakening in my estimation...
Release The Hounds
(467 posts)Demeter
(85,373 posts)and it's not going away. In fact, it's going GLOBAL.
magic59
(429 posts)Big depression heading our way and commodities will take a huge hit along with stocks.
Demeter
(85,373 posts)Sunlei
(22,651 posts)Canuckistanian
(42,290 posts)You can be sure Goldman Sachs is making money on it.
liberal N proud
(60,300 posts)Spitfire of ATJ
(32,723 posts)Yavin4
(35,356 posts)Not a good thing.
antigone382
(3,682 posts)Both drivers and the economy require adequate supplies of food and water. Climate change profoundly endangers that. Increased fuel use is a death sentence.
cprise
(8,445 posts)Stallion
(6,473 posts)some crisis in oil production will magically force prices up
Sunlei
(22,651 posts)NickB79
(19,113 posts)Most of the new oil supply brought online in the past decade are from hard-to-extract reserves, such as frack-oil, tarsands, and offshore drilling rigs. The break-even price point on most of these runs at $50 and up.
If the price of oil ever cratered below $50, you'd see oil-producing areas like North Dakota and much of Texas shut down their rigs because they'd be operating at a loss. With millions of barrels of oil off the market, oil prices would skyrocket again. The only way to get oil prices down permanently would be to use less of the stuff, for good, so that the reduction in demand outpaces the reduction in supply.
With China now adding 20 million cars per year to their roads, many of them luxury cars and SUV's, good luck with that.
Sunlei
(22,651 posts)less if a barrel (by weight) is close to the refinery.
Maybe we need a couple more refineries (public owned?) to increase competition for sales.
I've always said the tar sands should refine right in place instead of spending billions of federal funds to pipeline that nasty toxic shale oil to texas..Refine that nasty stuff to ship to china. And the only people who profit are the stockholders.
We are using much less oil and gas. We'd use even less if we could progress faster with clean energy. But I very much doubt 3rd world countries, the other dirty first world countries and even some states that don't regulate well will do it.