Oil price falls: how does it affect Joe the Plumber?

Oil prices have fallen below $70 a barrel but companies that would normally be jumping hoops with this drop in price are not, the economic slowdown has crushed any hopes that crude oil at discounted prices will help life the economy.

Crude oil dropping below $70 a barrel would be music to the ears to the engines of American Industry but these are not normal times and the news has not boosted the industry, airlines are not able to reduce their flight prices, even Joe the plumber won’t see any significant cut on petrol when he fills up.

Analyses say that the drop in crude oil is just another sign of recession, as investors presume that the world will need less energy.

According to auto club AAA a gallon of regular gasoline dropped another 4 cents giving it a national average of $3.084, with gasoline dropping 3 cents down to $3.764 for a gallon.

Source: washingtonpost