oil prices

A drop in global oil prices saved U.S. drivers $100 billion last year. Good news, right? Not so, say some economists. The energy industry is now so big that cheap oil may actually hurt the economy.

Many homes in the Northeast use oil heat, and many homeowners lock into a set price to avoid nasty surprises. But this year, that prudent step has backfired as oil prices plunge.

Alaska may overhaul the way it spends its oil wealth. While the state has a lot of oil, the price of oil has dropped so much that the state now has a $3.5 billion deficit — two-thirds of its budget.

The deal in Saudi Arabia has been no taxation and no representation. Bottom-of-the-barrel crude prices changed the first half of the equation this week, as officials cut utility and gas subsidies.

Oil prices are falling, down sharply since mid-June to just over $45 a barrel. That has affected gasoline prices, now down to an average of $2.65 a gallon, about 85 cents less than a year ago.

When it comes to improving the standard of living for Americans, the middle class could use some help. One Harvard economist says the help is underground, in the form of oil and natural gas.

Oil hit a new high for the year — closing at just under $61 a barrel. But some analysts say the global economic slowdown and the rise of alternative energy will mean less demand and lower prices.