At the beginning of the year, the consensus was that oil prices had gone about as low as they possibly could, and were due to bounce back. But oil prices dropped again yesterday, to below $60 a barrel, while Baker Hughes reported that new rigs looking for oil fell for the 27th straight week.
People are noticing. According to Gallup, 57 percent of all American households say that lower gas prices are making a difference in their household finances. Just 17 percent said that lower gas prices have made no difference.
When asked what households are doing with that extra money, the most common response has been "paying down bills." That may be why these lower prices haven't had much impact on the economy; people are using their savings to pay down debt they had already incurred.
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