ALBANY, N.Y. (NEWS10) – The price of oil is now under $30 a barrel, and it’s had a ripple effect throughout the United States.
The U.S. currently has the lowest gas prices its seen in a decade. It’s giving everyone an opportunity to pad their pockets or indulge in a few more leisures.
According to experts, when prices increase, it’s normally due to drastic circumstances. But in this case, they said it’s because of what’s not happening.
“You can have environmental catastrophes, you can have war, you can have certain external factors that can affect not only oil but the fear of the loss of production,” Albany Gasoline Retailers Association Pres. Mac Brownson explained.
Brownson said because none of those external forces are affecting oil rates, the trickle-down effect equates to savings for consumers. The boost in spending is only one side of the coin.
“Oil companies are some of the biggest companies in the world,” Brownson said. “When they lose money, the stock market is held back because they are not doing well.”
There’s such an excess of oil worldwide, that it’s down to $29 a barrel. The national average for a gallon of gas is down to $1.84, according to AAA. Brownson said there are many contributing factors to the weak gas prices, but it all centers around the simple idea of supply and demand.
“A lot of countries contributed to controlling the price and cut production,” he said. “OPEC is one of those entities that tries to regulate the price, but they can’t agree on cutbacks so its every country for themselves.”
Brownson said that’s causing every country that’s able to produce as much oil as it can so that it can sell as much as possible. Therefore, the market has been saturated and prices are being driven down.
People in the Capital Region said they want the gas prices to stay low and to let the economy regulate itself through new spending habits.
“If they want to try and keep the economy even by keeping gas prices like this, everybody would be happy,” Richard Stamp, of Albany, said. “Let the gas prices stay leveled like this and there will be more money floating around for everybody.”
Brownson expects gas prices to remain low in the coming months.