Are Gas Prices Dropping For Good?

There is reason for optimism and hope when you see gas prices at or even below $3.00 per gallon, but will it last? It is true that the oil prices have dropped significantly in the past month. Prices often fluctuate due to political issues and unrest, and it gives fuel for those individuals that feel it is simply a ploy to placate people before the mid-term elections. The fact is the voting day has come and gone and prices are still subject to additionally fall an expected 15 cents in some areas. This means the low gas prices go beyond politics.

What is Driving Prices Down?

Civil wars, rebellions and political unrest will always drive prices to an extent, but the real reason behind the current drop in oil prices are the drastic reduction in demand, especially in the United States and an increase in production. New means of extracting crude oil, such as fracking, has really brought domestic production up. Prices will always be more dependent on supply and demand.

The record highs seen in recent years for crude oil trading may have brought a lot of profits in the short term for oil companies, but could ultimately cost them dearly in the long-term. Americans were driven harder to find ways to conserve energy and become less dependent on petroleum. They have settled into ways of getting by that mean less demand for oil-related products. This sets the stage for a reduction in gas prices that could last longer than any of the experts could have imagined or predicted.

Will This Help You Save Money on Travel?

No matter how far you plan to travel, the lower prices at the pump will last through the holidays and offer everyone a great opportunity to build memories with loved ones that was not there last season. If the public continues with their everyday methods of reducing fuel usage, this could be a trend that impacts well into next year and the foreseeable future. You can certainly give yourself and fellow buyers of fuel a pat on the back for bringing this welcome change. The public answered boldly to high gas prices and the oil companies have had no choice but to offer a more affordable product. Consumers will surely save a lot of money on gas in the coming months.

Unfortunately the savings in cheaper fuel will not be immediately noticeable in air fares. This is because airlines are locked into contracts for pricing well ahead of the holidays. The savings will come, but it will be well into the year 2015 before air travelers are cut a real break. It might be worthwhile to plan on a road trip instead. It can be a great way to stop and see sights you may have never seen before.