Crude oil prices worldwide have dropped 25 percent Since April 30, 2012. Reasons behind the drop include leveling or slowing of worldwide demand for oil due to continued economic slowdown, excess supply in North America and the dimmed expectation for another round of Federal Reserve monetary injections in the U.S. Dropping crude prices lower the price of gallon of gas at the pump.
The U.S. consumers are embracing the drop in gas prices at the pump as the summer driving season begins. The Automobile Association of America (AAA) expects a record number of drivers to be on the road for the 4th of July holiday weekend due to lower fuel prices. The national average for a gallon of gas stands at $3.39, a 10 cent drop from the previous week and 25 cents drop from month ago. The drop in gas prices can be attributed to falling demand, falling price of a barrel of oil, more efficient vehicles on the road and increased refining capacity in the U.S.
It is not just the travelling consumer who will be benefitting from lower gas prices. Auto parts stores, heavy equipment part suppliers, trucking industry and eventually retail stores will benefit from lower gas prices.