Why oil prices are falling, and what it means for the economy

Between tariffs roiling the global economy and OPEC putting more barrels on the market, prices have dropped significantly since January. That's good for consumers, and bad for oil companies.

May 7, 2025 - 00:15
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Why oil prices are falling, and what it means for the economy
A man stops to fill up his car at a gas station in Washington, D.C., in November. Gas prices have fallen this spring, despite the fact that they typically rise this time of year, largely because of lower oil prices. That saves drivers money and also brings down the costs of goods.

Between tariffs roiling the global economy and OPEC putting more barrels on the market, prices have dropped significantly since January. That's good for consumers, and bad for oil companies.

(Image credit: Andrew Harnik)