April 10, 2025
The National News Desk recently published an article featuring Jay Zagorsky, Clinical Associate Professor of Markets, Public Policy and Law, discussing how falling oil and gas prices are offering financial relief to American consumers, with West Texas Intermediate crude dropping nearly 20% since January 2025.
The recent drop in oil and gas prices, potentially saving households up to $500 a year, is being driven by market forces, not political decisions. Experts point to recession fears as a key factor lowering demand ahead of summer. While former President Trump’s “drill, baby, drill” rhetoric has returned, economists and industry leaders say it’s too soon to credit his policies. They also warn that rising steel tariffs could hinder domestic production by increasing well development costs, challenging goals of U.S. energy dominance.
“I think a couple of things are going on. And one of the things is I believe that oil traders are concerned about a future recession. And in a recession, people drive less. So, they’re not buying as much to stockpile for the summer driving season. But I can’t tell you that until we get inventory statistics out … and that won’t come for probably another couple of weeks,” Zagorsky adds.
Taken together, these factors paint a complex picture—where falling prices may benefit consumers in the short term but raise long-term concerns about the sustainability of domestic energy production.
