Oil prices dropped to a six-month low Thursday as investors and energy traders grew more concerned that the U.S. economy will enter another recession and that Europe’s debt problems are not closed to being solved.
As oil prices were dropping, the stock market plummeted. Major stock indexes fell more than 4 percent. The Dow Jones Industrial Average lost over 500 points. It was the worst day for the Dow since October 22, 2008.
The decline in oil should bring some needed relief to drivers. U.S. gas prices currently remain near three-year highs at a national average of $3.703 per gallon. But gas prcies are expected to drop in the near future.
According to Fred Rozell, retail pricing director at Oil Price Information Service, the recent slide in oil could push gasoline 20 to 35 cents per gallon lower over the next month. “This market is moving up and down, but you could see some sizable declines at the pump if this holds,” Rozell said.