Gas prices are down across America. Why? Because the price of oil is down. That’s good for consumers. Triple-A announced in September they expect gas prices below 3-dollars a gallon in many U.S. cities by the end of the year. Several reasons for this: Worldwide demand for oil is shrinking…temporarily. Economies overseas are slower than ours now.
On top of that, the Dollar is strong. Major investment banks are exiting their commodities positions, and the Saudis cut crude-oil prices. It’s a perfect storm, so if you’re driving around listening to this now, enjoy it. Will it last? I think for a while.
The biggest threat is always the Middle East. If ISIS or some other event threatens the delicate supply balance of crude oil, gas prices could jump back up overnight.
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