BALTIMORE (WJZ) — Crude oil prices have hit a five year low. Tracey Leong reports that analysts are predicting there’s no end in sight for how much prices can drop.
Lower prices trickle down to every consumer. People will be able to spend their money in many other places other than the gas pump.
Crude oil has tumbled to a new low at $66 per barrel.
“I think it’s great,” Ed Meyers, a Maryland driver said. “Could go even lower and that would be greater.”
The last time oil hit this price was in 2009. Experts, like Drew Cobbs with Maryland Petroleum Council, said there are many factors driving it down including lower demand and more fuel efficient cars on the road.
“One of the biggest factors for us is a real success story in the United States, is the amount of domestic production that’s now occurring and that has been a huge difference over the last six years,” Cobbs said.
Crude oil was at its highest in 2008 at $145 per barrel. Its currently less than half that price.
Drivers now get big savings at the pump. The average price of gas in Maryland is $2.82 a gallon.
“It is nice to fill the tank for less than 50 dollars finally,” Meyers said.
Experts predict the decrease in crude oil prices can effect many other goods.
“It goes into plastics and all sorts of other household goods, so there is quite a spread of that with the benefits of it being lower,” Cobbs said.
Low crude oil prices are expected to add a big boost to the economy.
“For every one cent in change of gasoline prices, is worth a billion dollars in disposable income,” Cobbs said.
“Especially this time of year, means that people have more money to spend for gifts for other people,” Vinny Meyers, Maryland driver said.
“Treat myself to lunch or even dinner,” Jeannette Edmonds, another Maryland driver said.
Analysts say that if the trends continue of lower demand and the domestic production of crude oil increases then the prices could continue to drop.
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