From the Washington Examiner:
U.S. consumers could be the winners of slowing global growth, as falling world demand for oil translates to lower costs for American households.
The price of gasoline at the pump has fallen by about 30 cents in the past month to slightly more than $3 per gallon, according to Gasbuddy.com. That decline is “kind of its own mini-stimulus, in a way,” said American Petroleum Institute senior economist Rayola Dougher.
It’s not just gas or crude oil, which has flirted with $80 a barrel in recent days. A wide range of commodities have declined in price in recent weeks, a drop that economists say is driven partly by expectations of slowing growth overseas, especially in Asia, and the possibility of outright recession in Europe and Japan.
Slowing global growth is bad news for the U.S, which has trading partners across the world. But the effects of lower energy prices are likely to be a net benefit for growth, with the advantages to consumers outweighing the hit to exporters and the energy industry, the fastest-growing sector in the U.S.
For every penny reduction in the the price of gas, Dougher explained, there is a saving to consumers of about $1.4 billion over the course of a year, assuming no further price changes.
Read more: WashingtonExaminer.com
