Oil Has Fallen

Many people are not following their normal routines these days.  As a matter a fact by law many individuals are not even allowed to drive except for emergency services across the United States.  The braud stay at home orders have made massive changes in the economy and how the average citizen lives.  But for those who are out and about, they have started to notice a trend.  The gas prices have fallen to their lowest levels since 1999.  I can remember those cheapest I ever saw gas was for 75 cents down in Florida on  a family vacation in the early 90’s.  I will never forget the shock then and shock now as I see gas prices nearing a dollar! Granted they are still averaging $1:50 where I am located but that is incredible.

So why is the gas price falling so fast? It fell around 27% on Monday to a price of 13.16 after falling 19% the week before. Gold also fell around 2% too.  This is most likely all based around the uncertainty the COVID-19 pandemic has brought.  It has lowered our markets and brought with it many ups and downs.  Some Financial Research Companies like AMerican FX Capital predicted this months ago, but most of us never thought it possible. The stimulus package that ran out of funds for Small Businesses and investors is putting everyone on edge and we are all wondering if it will get more funds to keep out economy moving forward. 

Currently the house and Senate are debating whether to increase funds and are fighting over who gets to fund their pet projects along with the stimulus package extension.  It is still not known if they will actually pass another stimulus package. All this uncertainty has driven prices low and even though small resurgence have occured in our market, most investors are simply too skeptical and unsure what to do to start buying again.

If the Stay at Home orders were not in place it would be a great time to do a driving vacation across the nation. The gas prices are low and the weather is starting to turn warm. As they usually stay home and follow local government law and regulations.  We are not giving financial advice, only talking about the market as we see it.  Please see your local broker, finance firm, or attorney for financial advice.