HOUSTON, Texas - There's good news and bad news. The good news is gas prices are going down. That's right, the lowest prices in six years, and that's enough reason to celebrate. And the bad news is… gas prices are going down.
What's great for consumers isn't always a bright sign for the economy as a whole. Gas prices might be falling, but so are the prices of other commodities, like metals, which could negatively impact future investments in places such as Europe, China and Japan.
"The price of crude is falling because there's too much of it in the world right now relative to demand" explained Bob Tipee, Editor of the Gas & Oil Journal. "A part of that is, of course, the surge in production in the United States."
"Oil producers suffer at times of diminishing prices" said Tipee. "Refiners, on the other hand, actually benefit; but indeed we could see some shrunken drilling and production budgets by some of the operating oil and gas companies in the next few months. We might see layoffs."