Tags: gasoline | prices | economy | oil

Experts: Falling Gasoline Prices to Slip Even Lower

Sunday, 13 May 2012 10:48 AM

Gasoline prices are falling and will drop even further, but don't expect them to plummet, experts say.

Earlier this year, tensions with Iran and solid global demand sent oil prices soaring, which brought U.S. gasoline prices to a nationwide average peak of $3.94 in April.

Worries grew that prices would reach $5 a gallon as the summer driving season drew closer, but easing tensions in the Middle East, increased OPEC supplies and cooling European and Chinese economies sent prices falling.

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Today, prices are averaging $3.73 a gallon, according to the AAA Daily Fuel Gauge Report.

"You have seen an early peak in gasoline prices, and barring any headlines from Iran, that [decline in prices] should be the case throughout the summer," says Mike Fitzpatrick, editor-in-chief of Kilduff Report's Energy Overview, according to CNNMoney.

Don't expect prices to fall too far, other experts point out.

"There are a lot of folks who were predicting $5 a gallon when prices were heading up, now they're predicting less than $3 a gallon. Neither is going to happen," says Tom Kloza, chief oil analyst for the Oil Price Information Service, CNNMoney adds.

"I'd say that $3.50 for a national average is probably as good as it's going to get."

Rising gasoline prices can hurt a president's chances of reelection but once they fall, people forget about them and the president receives no credit for lowering them whether his policies brought them down or not.

Now that prices are falling, voters will focus on a weak economy, which could hurt President Barack Obama even more.

"President Obama is out of the frying pan and into the fire of economic statistics," says Bill Connelly, a professor of politics at Washington and Lee University in Lexington, Va., the Christian Science Monitor reports

"Now, we’re into other economic issues."

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Sunday, 13 May 2012 10:48 AM
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