Articles from Theodore Cangero
It appears to defy economic logic: Large numbers of American oil rigs have gone idle, and thousands of oil workers have lost their jobs. Nevertheless, the price of gas has stayed low. Even with far fewer working rigs, production remains only slightly off its peak, and inventories are at their highest point in recent memory.
Since July, the price per barrel of oil has fallen from about $107 to $61 this morning. The national average price per gallon of regular gasoline has declined during that time from $3.70 to about $2.70 today. The decline in oil prices has put more disposable income into consumer pocketbooks, and boosted business profit margins.