Falling oil prices have helped the U.S. economy and revitalized the spending power of the American consumer

The recent plummet of oil prices have drained hundreds of billions of dollars from oil-rich exporters and oil companies but has injected a critically needed boost to the faltering economies in Europe and parts of Asia, but more directly to the American consumer, it has given them an increase in spending money right in time for the holiday shopping season.

LOS ANGELES, CA (Catholic Online) - This drastic change from years of high oil prices could result in one of the largest transfers of wealth in history. It has the potential of reshaping major issues like Iran's nuclear program, the policies of the Federal Reserve and even rejuvenating the U.S. economy.

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Since mid-June, the price of oil has fallen by about 40%. Following a decision made by the Organization of the Petroleum Exporting Countries to continue pumping oil at the same rate, prices could continue to plunge thanks to a week global demand for oil and an enlarging surplus of cheap U.S. oil supplies and exports.

Right now the major question on the minds of policymakers, investors and companies is just how low oil prices will go, and how long they will stay that way.

Currently, American motorists are saving about $630 million on gasoline compared to what they paid in June. If prices remain this low for a year that number increases to $230 billion.

The majority of this saved income will give a massive boost to the economy, as even lower-income households on tighter budgets will be able to have extra money to spend on groceries, clothing and other products.

The average price of a gallon of gas in the United States is $2.77, the AAA reported. Right now they project these prices could fall by another 10 to 20 cents.

More helpful even is the savings these lower oil prices have on larger companies. For example, during an interview with CBS, the CEO of Delta Air Lines said that every penny that the price of jet fuel declines means a savings of $40 million for the company.

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