This April 20, 2012, file photo, shows a gas pump displaying a $100 sale in Barre Vt.
Toby Talbot, File, Associated Press
The price of oil went south of $88 a barrel Wednesday, reaching its lowest level in seven months, according to CNNMoney.
Oil prices dropped to $87.49 a barrel before hovering around $88, which is still down $3 from Tuesday. The cause for the drop in oil prices comes from fears that economic woes in Spain, Greece, Portugal and Italy will result in a global recession, according to the article.
Gas prices peaked in the U.S. in April when they hit $3.94 a gallon. Then gas prices dropped to a current price of $3.63 a gallon, according to AAA. Oil prices reached $110 a barrel in March but have since fallen to their present levels due to increased relations with Iran and a faltering economy in Europe, according to CNNMoney.
Falling gas prices may be giving Americans some extra cash, but that might not be welcome if the situation ends in another recession in the U.S., according to the article.
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This is a huge boost to low income families, far better than even a tax cut becuase it makes impact today. To a family with an monthly take home of 2,000 a month, having an extra 20 to 30 dollars a week has real impact.
Lets hope it
Hopefully the decrease in the cost of oil will continue to drop making gas prices even lower However it is frightening to think that it could all change and we would be back into another recession.
Nope. The oil and gas markets are not free markets.