Good news coming from the oil industry as price is down to the lowest level since the beginning of 2009.

Good news coming from the oil industry as price is down to the lowest level since the beginning of 2009.

The trend will likely continue in the foreseeable future taking into account the Organization of the Petroleum Exporting Countries (OPEC) has decided to maintain crude production output at the same level. This obviously creates more available stock and drives the oil price down and consequently (but not generally) lowers fuel prices. However, US production of shale-oil is expected to decrease by 116,000 barrels a day to 4.861 million barrels a day in January, according to the monthly data released by the US government.

As for gasoline and diesel prices, Diesel Driver says the last time these were as low as they are now in United States was in 2007. It’s particularly good news for customers in the market for thirsty SUVs and pickup trucks. On the other side of the coin we find automakers that put a big emphasis on hybrids, plug-in hybrids, and EVs. With gas prices so low, sales of alternatively-powered cars are at risk to take a hit.

For the sake of comparison, the average price for a gallon of diesel was $2.482 at the start of the month and this represents a massive $1.184 decrease compared to the same period of 2014. As for gasoline, the average price at the beginning of last week was $2.059, down by $0.719. These fuel prices will likely remain at such low levels at least until the end of February.

Source: marketwatch.com and thedieseldriver.com

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