One thing that is always on people’s minds is the price of gas. Due to the large role it plays in our society, it is one of the main components and influences of prices around the world.
In addition to people paying for gas at the pump for their cars, companies pay for gas in order to transport goods around the world as well.
It is essential to everyday life, and many people have been pleased to see that the price of gas has been dropping over the past few months.
According to CNBC, crude oil prices have dropped over 60 percent since June 2014. One of the main reasons for this drop is the largest global surplus of crude oil in current time, along with concerns about the slowing Chinese economy.
“We think we are near the floor, but nothing precludes that we temporarily move lower,” says BNP Paribas global head of commodity strategy, Harry Tchilinguirian.
Essentially, Tchilinguirian believes we are near the lowest prices for oil, but nothing is indicating that oil has finished decreasing in price.
CNBC also reported that advances in technology have helped oil rigs produce roughly double the amount of oil in the past year, essentially allowing the industry to do more with no added work. It seems that over the next few months, oil will continue to fall, effectively reducing gas prices at the pumps. It’s something to look forward to and will hopefully save you some money in the near future.
