For the last month, many Vandalia area residents have enjoyed the financial relief felt at the gas pump as they’ve seen prices drop as low as $2.43 per gallon.
The drop in price has caused many of us to reflect on the days when gas was less than $2 per gallon.
Well, after a recent Organization of the Petroleum Exporting Countries (OPEC) decision, gas prices might soon hit that mark after most of us thought we’d never again see that price.
OPEC has made a decision to stand still, which pushed a big selloff in oil. It said it will keep oil production at current levels. This means traders are more worried that global supplies exceed demand.
A large increase in production in the U.S. due to drillers capitalizing on hard to reach shale oil is one of the big reasons for the decline in price.
In a Fox News report, GasBuddy.com projects gas prices will likely hit $1.99 per gallon for the first time in several years in either Texas or South Carolina.
The per barrel trading was recently around $68.50 per barrel. That total could dip as low as $63.75 in early 2015.
Whatever the case, the many holiday travelers in our area will enjoy these prices this month.
This will in turn help families in a time of the year where their financial dollars are already being stretched very thin.
Auto makers are also crediting the lower gasoline prices to a boost in auto sales.
According to investors.com, Chrysler’s sales jumped 20.1% to 171,000 vehicles last month. That is their best run in 13 years.
Dodge Ram reported an increase in 21% with 36,000 vehicles.
I hope everyone enjoys the relief at the pump. It’s sure making my wallet feel like it has more money in it.