The price of oil has fallen by 9 percent $88 a barrel. Nationwide, average retail prices have fallen by 28 cents per gallon, or 7 percent, since Feb. 27, to $3.51 per gallon. Analysts say pump prices could fall another 20 cents over the next two months. Diesel and jet fuel have also gotten cheaper in recent weeks, which is good news for truckers, airlines and other energy-intensive businesses.
What are the causes of this decline in oil prices?
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.
Philip Verleger, an economist who studies energy prices, says that many monthly household expenses are fixed, but gasoline is one of the few big expenses that varies. That means when gasoline prices rise — or fall — people notice.
Picture by Latam Telecom