Oil Prices on the Decline in San Diego

As much as San Diegans love their city, it’s no secret that living in an ocean-front paradise comes at a cost.

A few weeks ago, driving past a gas station and seeing the astronomically high prices induced panic attacks for many consumers. It is no secret that the nation’s economy has been on shaky ground and with summer just around the corner, Americans are bracing themselves for another season of belt-tightening.

However for those hesitant vacationers, debating whether or not to invest money into a trip this year, things are looking up.

The University of Michigan released numbers last month that showed the economy grew around 0.4% during May. At 0.4%, the actual growth was smaller than the projections made earlier in the year, but still consumer confidence is up and so is spending. This growth can be attributed to the increase in national income, but also to lower gas prices, which have been on the decline during the past couple of weeks.

There are many factors to consider when calculating oil prices. Normally, the price of oil tends to taper off around summer because refineries increase their production every year to accommodate the number of travelers that take to the roads. But on a global level, one theory is that the high prices from earlier this year caused a decrease in demand for oil, thus lowering prices at the pump. However this decline may be temporary. The growing global demand for oil combined with the civil unrest in Libya will make for some volatile gas prices in the next couple of years.

But for now, people should enjoy the lower gas prices. With graduations and commencements being held left and right, San Diego will soon be filled with happy graduates looking the spend their last summer relaxing before being thrust into the real world, faced with responsibilities and the inevitable burden of oil prices.