Weak economic reports are sending oil prices plunging.
A pump jack is silhouetted against the setting sun in Oklahoma City. Oil prices fell again on Friday after a dismal jobs report. The bright side? Falling oil prices are leading to lower gas costs.At least two states — South Carolina and Virginia — had stations selling gas for $2.99 on Friday and it could fall below $3 in more areas over the weekend. A plunge in oil prices has knocked more than 30 cents off the price of a gallon of gas in most parts of the U.S. since early April.
The national average is now $3.61. The Lehigh Valley average is $3.52, according to to AAA website.
Experts predict a further decline in the next few weeks. If Americans spend less filling their tanks, they’ll have more money for discretionary purchases.
The downside? Lower oil and gas prices are symptoms of weakening economic conditions in the U.S. and around the globe.
On Friday, oil plunged nearly 4 percent as a bleak report on U.S. job growth heightened worries about a slowing global economy and waning oil demand.
West Texas Intermediate, the benchmark for oil in the U.S, fell $3.30, or 3.7 percent, to $83.23 per barrel, the lowest price since early October. U.S. drivers should feel some relief, even if they’re worried about jobs.
Auto club AAA says pump prices fell nearly 5 percent in May, the largest monthly percentage drop since November.