So who are enjoying the lower gas prices? I know many people are! Gas prices in Alabama are now mostly below $3 a gallon for regular. It has been like this for over a week now!
Yes, I believe we are not done seeing the gas prices going lower, and that might not be a good thing. You see, with the oil prices going lower, which means the gas prices go lower. You also see slowdown across the global economy. The economy in the United States is getting better, but most of the world is seeing the economy slow down. And that slowdown could affect the economy in the United States.
Another reason the gas prices are going lower, oil production in the United States and Canada in the tar sands. It is affecting OPEC, and some see OPEC as trying to end the tar sands production by producing more oil, and lower the prices. It costs a lot of money to produce oil out of the tar sands, and a lower oil barrel price means it would not be profitable to produce oil from the tar sands. So, if the price of oil keeps going down, could it affect the tar sands production?
For now, the lower gas prices is great! More people will travel for Thanksgiving and Christmas, more people will spend during the holidays, and people will feel more confident to spend money in the economy. But, if we keep seeing the gas prices and oil prices going down, we could enter another recession in the United States in 2015. To understand the lower gas prices, you need to watch this video below from Nightly Business Report. They brought in John Kildiff to talk about the lower gas and oil prices, and what it might do in the economy, watch below!