SPRINGFIELD, Mass. (WWLP) – Cheaper oil may be slowing down the global economy, but it also means you’re buying cheaper gas. Oil prices went down again on Monday, and the cost of a barrel of crude oil is about $38. That’s the lowest it’s been since February 2009.
Right now, the demand for oil is low, even though there’s a plentiful supply of it, and that’s contributing to the economic slowdown.
But the economic slow down is actually becoming good news for drivers: gas is cheap, and it’s expected to go even lower. William Peffer, C.O.O. of Balise Auto Dealerships, says now is the time to buy a car, but the decision to buy shouldn’t only be based on fuel economy.
“Different technologies today make even large vehicles more fuel efficient,” says Peffer. “Prices going down, that just compounds that effect. So no, we don’t recommend that people only look at fuel. It’s gotta fit their lifestyle.”
Peffer says don’t buy a bigger car or truck just because gas is cheap. Instead, drivers use the money they save at the pump to buy a car that best fits their needs.
One driver told 22News he was mindful of the impact of cheaper gas. “I would definitely like to have a better global economy,” says Micahel Camille of West Springfield, “because that means we’ll have more disposable income to pay for our gas. So, gas prices are low, but that also means that the economy is not doing so well either so, it’s a Catch-22.”
CNN says gas could drop to $2 per gallon in most of the country this fall.
In June 2014, oil was $100 a barrel.
- Related: Pump Price