Gas prices dropped the most in Ohio, where the average price for a gallon was $2.03, a full $1.9 lower than it was on June 1, according to data provided by AAA’s Daily Fuel Gauge Report.
A number of factors have contributed to the plummeting price of crude oil worldwide since June, which has resulted in lower prices at the pump.
Generally, money saved at the pump is money in consumers’ pockets, so in that sense the drop in oil prices has been positive for the economy. But declining oil prices have had a variable effect beyond the pump. The low prices have energy-dependent states on edge as revenue could suffer dramatically if the declining prices are sustained.
It would be a mistake for oil producers to expect a return to the high, stable prices of recent years. By the same token, American consumers should not get too used to cheap gas, since in the long run low oil prices erode the conditions that brought them about. Producers are already starting to adjust: ConocoPhillips just announced that it is cutting its drilling budget. And, because cheap oil gives everyone an economic boost, eventually it leads to higher demand.
“We are awash in oil right now. Soon enough, we may be wondering where it all went”, argues the writer of the Financial page The New Yorker’s James Surowiecki.
The AAA spokesman Michael Green said, “Once the market stabilizes, gas prices will once again be primarily determined by fundamentals such as refinery disruptions or maintenance. By summer, prices also could rise due to high demand.”