Source: Chart of the Day
As a result of an
overall sluggish global economy plus increased global supply, the price
of crude oil continues to trend lower. Over the past seven months, the
cost of one gallon of gasoline has declined a significant $0.88 (i.e.
24%). Today's chart provides some long-term perspective in regards to
gasoline prices by presenting the inflation-adjusted US price of one
gallon of gasoline since 1980. There are a few points of interest. For
one, geopolitical crises are often associated with major swings in the
price of gasoline. It is also worth noting that, since the financial
crisis, the resulting peaks of gasoline price spikes have been
decreasing over time (see downward sloping red trendline). In the end,
the recent plunge has brought gasoline prices to five-year lows.