Fuel prices in the U.S. slumped to a five-year low Friday after a sharp drop in oil prices caused gasoline prices to plummet.
Fuel prices for domestic cars fell 7 cents to $1.35 a gallon, the lowest level since July 2014, according to AAA.
A gallon of gasoline sold for $1,271 in January, according a Reuters survey.
Prices fell 6 cents to a record $1:21 a gallon in February.
The average price for a gallon of regular gasoline, the fuel used by most Americans, dropped 10 cents to just over $1 a gallon.
It was the lowest since October 2016, according the data.
That was the second straight day of losses for gasoline.
In a market that is generally bullish on crude oil, the drop in crude oil prices is a blow to the U,S.
economy and the economy of Saudi Arabia.
Oil prices are up more than 70 percent from a year ago, making the impact of a sharp decline in oil on the U a significant concern.
The oil price slump has led to more job losses and more layoffs in the energy sector, and the sharp drop has prompted analysts to warn that the U could soon be in recession.
“The drop in U.K. crude oil oil is a significant blow to growth, jobs and the U., and it is the latest sign that the world is in a recession,” said Jefferies analyst Craig Moffett in a research note.
The fall in crude is the result of a major reduction in oil production from OPEC, the group of nations that includes the U-S.
The U.C.S., which includes Saudi Arabia, was the last country to cut production of oil and the price drop has led Saudi Arabia to cut its prices by almost a third in the past year.
Saudi Arabia cut its crude oil production in February and March from 1.5 million barrels a day to a little over 2.5-million barrels a year, down from 3.4 million barrels.
That is the highest since January 2017.
However, the plunge in U-K.
oil prices has led many to suggest that the oil price drop is a harbinger of the oil market turning over to other players.
The drop of crude prices is not the only reason for lower prices, according, the International Energy Agency said.
Energy prices have declined for the past two months because of the fall in oil.
In addition, the decline in crude prices has made it more difficult for oil producers to export oil to foreign markets.
“Oil prices are not a sign of health of the global economy,” said Paul Blum, head of oil trading strategy at London-based brokerage Raymond James.
“The decline in global oil demand has slowed to a crawl in recent months.”
The drop will have an immediate impact on the cost of oil.
The IEA predicts global oil prices will fall from $130 a barrel in December to $115 next year.
Oil prices have been declining for decades, though they have been in a bear market for years.
Oil has been the main driver of the U.-S.
economic growth since the 1970s.
But oil prices were driven down in the aftermath of the financial crisis and the global recession, and have since recovered.