Impact of Dropping Oil Prices on U.S. Economy |

The price of oil has dropped to some of its lowest levels of the year, making it less expensive for Americans to fuel their cars, but further straining U.S. oil companies, which have been idling drilling rigs and shedding thousands of workers.

At less than $59 a barrel, U.S. oil prices are now about 19% lower than they were at the end of last year. That is low enough that it no longer makes financial sense for many companies to drill new wells.

The main reason for the drop is that global oil production has been growing more quickly than demand.

The recent slide below $60 a barrel came this month, after Israel and Hamas agreed to a ceasefire, alleviating concerns that Middle East conflicts would disrupt the flow of oil. At the same time, heightened trade tensions have weighed on expectat