Oil is in the middle of its steepest decline since the financial crisis of 2008. A major reason in the recent decline is the surging global oil production that has resulted in supply increasing more than demand. Although this is not great news for oil producers and distributors, it has been good for consumers.

Lower prices at the pumps could mean more money in time for the holiday sales season. On an individual basis, the savings may seem modest but across a nation it can be significant. Tom Kloza, the global head of energy analysis at the Oil Price Information Service, determined that Americans spend roughly $1 billion on gasoline per day. Based on the current average price of gasoline he estimates that consumers would save $8.4 billion in November and December alone.

Falling oil prices, which were a major tailwind for capital markets a month ago, could potentially inject more capital into the economy. Don't be surprised if the savings from lower gas prices finds itself into the bottom of another cash register before the end of the year.

Ethan Wade, Financial Advisor

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(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).