Oil Prices Move Lower As Concerns Over U.S. Economy Grow

Oil prices continue the downward slide, falling to the lowest levels since 2021.  Patrick DeHaan with Gasbuddy.com said prices, now below $70 per barrel for West Texas Crude, have been welcomed relief for drivers and consumers.

“By all metrics, oil prices being down has been good for gasoline and diesel prices, which both stand at the lowest levels in some time.”

DeHaan noted the news isn’t all good.  He said the main reason oil prices are moving lower, is the growing concern that the U.S. economy could stall out and slow down.

"The Fed has raised interest rates, that's acted to cool off the economy. The jobs market, though, is really the area that is worth monitoring, and that's where markets are getting a little jittery after last week's worse than expected jobs report highlighting that companies are not adding as many jobs as expectations, and so I think there's some warning signals, that the U.S. economy may be starting to stagnate, so it's going to be very challenging for the Federal Reserve to time things right.” 

DeHaan added there’s growing concern that there could be a broader economic slowdown if interest rates are not trimmed this month.  DeHaan added many investors are very concerned about the China economy, and the problems there.  But despite the many questions, DeHaan says the expectation is that fuel prices will continue to move lower in the foreseeable future.

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