Did You Know That Oil Prices Are Heading Downward -- Fast?
When gasoline prices began to spike earlier this year, the popular opinion was that oil prices would continue to climb into the peak summer travel season. So much for popular opinion. Crude oil futures have taken a hit lately, delivering an 8.6% slide to speculators over the past five trading days. On Tuesday, June crude settled at a three-month low, due in part to fears about Europe's financial crisis erupting into another economic setback and stifling global oil demand. Obviously a sharp one-week drop isn't the last word on where oil prices are ultimately heading, but the news is likely to be good for your pocketbook. How Much Cheaper Are We Talking? After five weeks of surprising declines, the U.S. Energy Information Administration is revising its forecast for average gasoline prices during the summer driving period. The EIA is now targeting an average cost of just $3.79 a gallon. The original forecast called for an average of $3.95 per gallon. Sponsored Links
This is obviously welcome news to drivers, but it's still worth cheering about even if you don't have a car. From food to clothing, how do you think merchandise makes its way to a store near you? Transportation costs are baked into the prices that you're paying as a consumer, and lower oil prices should help.There are also many industries celebrating the recent decline in energy prices. Retreating gasoline prices are good for hotel chains and amusement park operators, since drivers are less likely to put off summer road trips if gasoline isn't going through the roof.
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Source: http://www.dailyfinance.com/2012/05/09/did-you-know-that-oil-prices-are-heading-downward-fast/