Market decline

How the stock market drop affects the price of gas

JACKSONVILLE, Florida. – There is a silver lining to the stock market crash. Americans are paying less at the gas pump due to a shutting down global economy and a huge spike in oil production.

Crude oil prices are at their lowest since 2009, at around $39 a barrel.

A local financial planner says these low prices are good and bad. You can expect to see the price of a gallon of gas drop below $2 a gallon soon. She also says that may not be the best thing for the current state of the stock market.

Carolyn McClanahan of Life Planning Partners explains that one of the reasons the stock market has fallen so much recently is the drop in crude oil prices.

“It affects economies around the world, especially emerging markets where many of them are oil producers and depend on a decent price of oil to sustain their economies,” McClanahan said.

Crude oil fell below $39 a barrel on Monday. This is a drop of 5% and a level not seen since 2009. In June 2014, oil was at $100 a barrel.

McClanahan says that with the United States producing so much of its own oil these days, there is actually too much oil.

“(It’s) bad for the stock market, bad for the American oil industry. Since we produce a lot ourselves, there is good and bad and everything is like a pendulum swinging and eventually we will see the gas prices go up,” McClanahan said.

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She says the price of oil is one of many factors contributing to the stock market’s slide. She has some words of wisdom on how to protect yourself when it comes to Wall Street.

“The old question everyone worries about the stock market when it goes down, what should I do? Don’t follow the herd. Unfortunately, people only think about the stock market when it goes down. thinking about your investments, which includes retirement savings and 401K is throughout your life and every day,” McClanahan said.

She says if you’re young and don’t have to worry about money for the next 40 years, you can be more aggressive and stay in stocks and not pay attention to the downturn. But she says if you’re older and need to be careful with your money, you need to limit the amount you put into stocks so you can weather times like this.

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