The sharp slump in oil prices over the last few months is finally beginning to bring relief at the gasoline pump, with the price of a gallon of regular gasoline dropping nearly a penny a day over the last four weeks.
But low oil prices aren’t necessarily good news. They usually signal that the economy is in decline – or at least that most people believe the economy is in decline.
The average price of a basket of OPEC crudes fell to $98.59 a barrel on Oct. 5, $2.03 below the previous price posted on Sept. 30, OPEC’s website said.
This is the lowest price since Feb. 18, when political turmoil began to affect oil production in North Africa.
According to AAA’s Daily Fuel Gauge, the national average for a gallon of regular stood at $3.408 on Tuesday, down from $3.479 the week prior and $3.662 one month ago. A year ago, the average price per gallon was $2.58.
Question is – Will we get under $3 a gallon? I think we will, AAA spokesman Clay Ingram said in a statement.
“We’ve seen prices drop a fair amount, about 20 cents a gallon in the last month, and we’re probably in line for continued decreases in coming weeks and months,” he said.
Greece, at the center of the European debt crisis, said over the weekend that it will miss its lower spending targets despite severe cost-cutting. And China’s manufacturing sector appeared to cool off in September.