Slide in petrol prices to bolster US spending power and growth
A fall in fuel prices is expected to save US consumers about $90 per household per month by the end of the year, providing a boost to spending power and economic growth.
US crude oil prices have fallen from about $60 per barrel in late June to $38 on Monday, a decline that is set to drive retail petrol prices down below $2 per US gallon, their lowest since early 2009.
The weakness of oil prices is creating a countervailing force to the drag on the economy resulting from turbulence in world stock markets.US petrol prices will also be reduced in the coming months by a shift to cheaper blends from the more expensive varieties mandated by regulators during the summer, a slowdown in demand after the holiday driving season ends in early September, and a resumption of production at BP’s Whiting refinery in Indiana. (by Ed Crooks and Gregory Meyer, Financial Times)