Cheap Gas Prices Are A Welcome Sight
BALTIMORE COUNTY, Md. (WJZ) -- Gas prices are falling and falling. You may have noticed prices at the pump just keep going lower and it's all driven by crude oil. Monday, oil hit its lowest price in almost six years. It's a milestone drivers like to see but it's fueling financial fears on Wall Street.
Christie Ileto has the good news---and the bad news.
Falling oil prices may be good for your wallet when you fill up with gas but it's bad for the stock market.
In eastern Baltimore County, a gallon of regular gas is $2.17, which is a lot cheaper than it has been---and it's still dropping! A year ago in Maryland, gas was $1 to $1.50 higher.
"I can't even remember gas being this cheap," said one driver.
AAA says two factors are in play.
"We have an overabundance of supply and global demand is basically down," said Ragina Avarella, AAA.
While lower oil prices have been good for American consumers with cheaper gas prices putting an additional $14 billion back into their pockets in 2014, it's unsettling for investors. Monday marked the worst drop in the DOW and S&P since October. Analysts and traders say the continued free fall in oil prices played a major role.
"Oil did breach a psychological barrier of going below $50 a barrel. When oil falls that much, historically that is associated with an economic downturn. The difference this time, you have a much bigger supply out of the US. We've become the biggest producer of oil in the world," said Bill Stone, PNC Wealth Management.
And if this price slide continues, Maryland could join the Midwest and see gas prices dip below $2 a gallon.
Monday, the average price for a gallon of regular is $2.38, a little higher than the national average of $2.20.
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