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

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May 6th, 2025

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.

President Trump promised that during his presidency gasoline prices would drop and U.S. oil production would boom.

One of those things is happening.

Prices at the pump have indeed gone down, largely because the price of crude oil has dropped by nearly 25% since the start of January. West Texas Intermediate, the U.S. benchmark, dropped from a peak of around $80 a barrel in mid-January to just under $60 today.

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