Gas prices are falling fast

The recent decline in oil prices made the drivers happy, they started enjoying the cheapest petrol prices in the summer of 12 years.

According to AAA, oil prices fell to bear market, gasoline price fell, falling everyday since June 2. The national average price of a 1 gallon regular car is now 2.28 dollars, dropping 10 cents from the beginning of this month.

In 2017, Tom Kloza, Chief Oil Analyst of Crude Oil Price Information Service, announced that it will track the price of AAA pumps.

Since people are driving more and the demand for gasoline is also increasing, at the beginning of the summer it is not usually a cheap natural gas time. In addition, at gas stations, we need to sell a special type of natural gas called summer mixed gas. This will reduce smoke generation, but the price will also be slightly higher.

Mr. Croza said that the price of the pump may be cheaper than previous Christmas and New Year on the weekend of July 4th holiday the first century.

"This year is such a year," he said. "Perhaps everyone anticipates oil prices will be around $ 50 and believes that oil actions will reach $ 70 to $ 70, due to the actions of the Organization of Petroleum Exporting Countries."

In contrast, crude oil prices closed on Tuesday at a low price for nine months of 43.23 dollar per barrel, slightly rebounded on Wednesday. US shale oil producers have balanced OPEC and Russia's efforts to increase production in the last few months, restrict supply and increase prices

Natural gas less than $ 2 per gallon is becoming more common. According to AAA data, the cheapest state is South Carolina and the average price of natural gas is $ 1.96 per gallon. Several other states, such as Oklahoma, Alabama and Mississippi, are preparing to fall below an average of two dollars per gallon within a few days.

These prices may exaggerate the price actually paid by most drivers. According to GasBuddy.com, there are stations that sold natural gas in the southern states, and even some of the northern states, with gallons less than $ 2 dollars.

"I believe that wholesale prices are predicting retail prices, and I believe they are predicting, and we are ready for some very cheap natural gas," Kloza said .

In recent years, the income of oil and natural gas accounts for nearly half of the Russian state budget. Along with the rise in oil prices, the prices of oil and gas stabilized and the price of natural gas fell. This correlation weakens at certain points and becomes stronger during other periods, but it will persist over time. As crude oil prices rise, government budgets will increase and Russia will invest in infrastructure, social programs, and defense investment. On the contrary, due to the depreciation of crude oil, the national budget has fallen in proportion to the price decline. Therefore, the most obvious impact of crude oil prices on the Russian economy is to reduce or expand the government budget.

The price of natural gas is one of the most volatile prices in the economy as it increases and decreases according to supply, demand and other extrinsic factors in the global economy. Therefore it is not surprising that Hurricane Harvey raises gasoline costs throughout the United States. In addition, natural gas prices rose by 1 cents and US consumer spending fell by a billion dollars. Harvey expects to raise the national average natural gas price by 31 cents. This obviously will have a huge negative impact on consumer spending nationwide. Furthermore, the growth rate of Gross Domestic Product (GDP) in the third quarter is expected to decrease by approximately 3%. This is not a permanent decrease in GDP growth, as GDP growth is expected to increase by 0.2% in the first quarter of 2018.