Oil prices, along with gas prices continue to fall this week as worries over Greece and Spain's financial crisis renews focus on Europe's financial condition.

While this may look good for this summer’s motorists as the vacation season begins in full swing this week, the falling prices are over fears by traders that the deteriorating conditions in Europe may spark another larger recession.

Crude Oil prices dropped below $88 today over concern that the sputtering economy in Europe will throttle down demand for oil, also drawing down the price of crude is the apparent easing of tensions between the west and Iran.

With expectations of widespread unemployment in Spain and a contracting economy there brought on by the downgrading that country’s sovereign debt sparked fears that Spain will be unable to repay its debts. This most recent downgrade drops Spain’s debt further into junk status.

Greece is amid a large recession that borders on dimensions of the great depression as its economic crisis continues. The increasing social unrest and turmoil that has brought down the goverment there casts doubts on the European economy and the Euro itself. The slow release of funds from the $150 billion bailout package for that country as it restructures itself may do little for prospects of economic growth and saddles it with unsustainable debt.

Since any downturn in Europe will be felt in the U.S. as we slowly make our way out of the present recession, large downturns on that continent could concievably pull us right back in. This would make lower gas prices one of the only bright spots a the country struggles to make up economic ground.

The price of gasoline at the pump has been dropping nationwide for the last 7 weeks, putting the price well below last year’s prices at this time last year. Those easing prices have not yet been felt in Alaska however. Ketchikan’s Safeway is sporting the lowest price in the state with $4.15 a gallon. Anchorage’s price to beat is Tesoro’s $4.38 a gallon. Other parts of the state are still reeling will high prices, Homer is currently paying $4.83 at the pump, as is Petersburg. Kodiak is paying $4.50, while Glennallen is paying $4.81.

Rural prices at the pump are much higher than pumps on the road system, Nome is at $7.73, Bethel is at $6.33.