Tags: gas | prices

Gas Prices in Free-Fall

By    |   Friday, 10 Oct 2008 08:25 AM

Amid all the doom and gloom financial news these days, there is one bright spot.

Gasoline prices have fallen and are expected to drop even further.

"We ought to see prices drop pretty quickly. We're well on our way to $3 gas within the next week of two," American Automobile Association spokesman Georff Sundstrom told CNNMoney.

That's actually already the case in Oklahoma, where regular gas dropped to an average of $2.98 a gallon, reported the Oil Price Information Service.

According to survey results released by the AAA on Oct. 7, the national average price for a gallon of regular, unleaded gas fell 2.4 cents to $3.48 from $3.50. That's down 18 percent from an all-time high of $4.11 a gallon hit on July 17, but it's still above the year-ago average of $2.76 a gallon.

Sundstrom says declining consumer demand is to blame.

"Demand seems to be drying up week by week."

In September, after the Gulf region was slammed by Hurricane Ike, several refineries were forced to shut down operations. But refineries are operational again, and more product is available.

Crude fell to near 12-month lows below $85 on Thursday. Crude has now fallen nearly 43 percent since surging to an all-time record of $147.27 a barrel on July 11.

OPEC plans to hold an emergency meeting in November in Vienna to discuss the impact of the financial crisis on oil markets. Some analysts have predicted that OPEC might use the meeting to announce a production cut in an effort to keep prices from falling further.

Peter Beutel, oil analyst at Cameron Hanover, told The Associated Press that OPEC cuts can rally prices for a while, but he's not too concerned.

Given the dire economic conditions in the United States, Beutel said oil prices could be poised for another big drop.

"We have no idea at what price this economy can take. Nobody knows whether it's $100 or $60 or $40. My guess is that we're going to go a lot lower," said Beutel.

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Amid all the doom and gloom financial news these days, there is one bright spot.Gasoline prices have fallen and are expected to drop even further."We ought to see prices drop pretty quickly. We're well on our way to $3 gas within the next week of two," American Automobile...
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2008-25-10
Friday, 10 Oct 2008 08:25 AM
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