Will gas prices stay low? - News, Weather, Sports, Toledo, OH

Will gas prices stay low?

Report by John Matarese

The one upside to the economic crisis is low oil and gas prices. We've all watched in amazement as those prices have plunged in just two short months.

But will the break soon be over?

Many drivers cant believe their eyes: gasoline at $1.75, even $1.50 a gallon in some places, for the first time in three years. There are two mains reasons for the low prices: 1. Gas demand is down with Americans driving less this Fall. 2. Oil prices are now half what they were over the summer.

The downside is that plunging oil prices indicate a world economy slipping into recession. Less shopping in the U.S. means less production in Chinese factories, which means less demand for oil here and over there. Until that demand picks up, we can at least enjoy these savings at the pump.

Don't get too comfortable. Economists say when the economy picks up, so will gas prices.

For now the Wall Street Journal says with gas prices now half of what they were back in July, American consumers are enjoying an unexpected $200 billion dollar stimulus, which is about $20 a week in savings per car.

Powered by Frankly