Analysts: $3 Gas By Fall

After months of skyrocketing gas prices and reports that summer prices would hit the $5 mark, it seems as though gas prices may finally drop to $3 by fall, USA Today reports.

With oil production up, inventories at 21-year highs, and tepid consumer demand, not to mention the European recession, gas prices have noticeably fallen over the past 11 weeks, USA Today reports.

“The market is suggesting gas below $3 by Halloween, and certainly by Thanksgiving,” says Tom Kloza of the Oil Price Information Service.

However, with warmer weather and more vacation time, summer brings a new set of factors into the mix that need to be considered, such as hurricanes. Gas prices soared to an all-time high of $4.11 in July 2008 as a direct result of that year’s hurricane season.