Gas Prices have fallen to 2.80/gallon. This is Bad News.

You might be very happy that the price of gas has dropped so sharply. Some estimates have it as people in the United States are saving over 300 million per day, down from the almost 4 dollars a gallon it was earlier in the year. More money in your pocket means more you can spend and put back in the economy and less for OPEC, right?
Well as it turns out, it actually is a bad thing. Falling gas prices are an indicator of a sick global economy.

Gas prices in 1988 from the movie 'Die Hard'
when the cop got the call at a gas station
to check out Nagatomi Plaza

The price of oil depends on several global factors...supply, demand, economic forecasts, speculation, and political unrest and or turmoil. Gas prices are figured on world demand. If the world demand is dropping, that means that there is a slowing world economy. And if there is a slowing world economy, there is going to be a big problem in the world markets, and that also includes our markets here in the United States.
Whats happening is OPEC is still producing the same amount of oil as it has been during the last several years, but the buyers are scaling back due to weaker economies. This creates an imbalance between supply and demand and that is whats driving the prices lower. Seeing that 50 percent of oil now goes to other countries such as China some economists are seeing this as a big world problem as China's economy is also slowing down as well as India and a  few other big countries. The economies of the United States and China and India are already having problems, this is a global red flag and perhaps a prelude to a big stock market crash.

Trade Cautiously,
Mark