Gas Could Fall to $3 by Autumn

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The last time the national average price for regular unleaded gasoline fell below $3 a gallon was Christmas 2010, but it could hit that mark long before you hang this year's mistletoe. Citing falling tensions in the Middle East, fewer oil-refinery glitches and sated energy speculators, USA Today reports West Texas Intermediate crude oil fell below $80 a barrel this week as the national average price of gas hit $3.45 a gallon — down 22 cents from a month ago and 17 cents below the June 2011 average price.

"The market is suggesting gas below $3 by Halloween, and certainly by Thanksgiving," Tom Kloza, chief analyst at the Oil Price Information Service, told USA Today.

That would require gas prices to drop nearly 50 cents more, but they've done almost that in the past 11 weeks. In early April, the national average was $3.87, or 42 cents more than today. Increased production has left oil inventories at 21-year highs, USA Today notes, and decreasing demand after the summer driving season should further reduce prices. Between Labor Day and Thanksgiving of last year, gas fell nearly 40 cents a gallon. Barring disruptions from a bad hurricane season — gas jumped 46 cents the week after Hurricane Katrina — pump prices could drop even more this year.

It's a silver lining to a darkening economic cloud. USA Today notes that a recession in Europe, where the sovereign debt crisis has dragged on for two years, could push oil prices down further. So could slowing growth in China.

The response from car shoppers has been mixed. In May, sales for full-size pickup trucks jumped 30.6%, but GM's full-size SUVs gained just 12.4% — well below the industry's 25.7% increase. In fact, medium and large SUVs remain up just 6.1% this year, while subcompact and midsize cars have gained more than 20%.

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Comments 

Paul

Everybody thank Obama. (Yes, I know the president doesn't control gas prices, but it's only logical that the people who blamed him when they were going up credit him when they're going down. Of course, I suppose it's silly to try to apply logic to Obama Derangement Syndrome...)

Max Reid

How many times, these writers will write like this, only to see that gas prices start rising.

OPEC is going to cut the supply by July and the oil prices will go up. Besides, more than 50,000 new vehicles were sold in China every day.

Obama doesn't have an energy policy in place. Anything good happens, it's an accident...
Read the story, prices are all about the global economics..

i think that gas prices will lower but other prices will jump, like oil and other parts for cars

Rockaby

I actually just paid $2.79 for gas today. Feels awesome!

Vincent

It was $1.81 at my corner station when Obama started his term.

Allistar Evans

If this is news, then it must be a slow day at the office.

Des Alba

Better enjoy these "low" prices while you can. They won't stay low for long.

If all those people currently unemployed could find a job, the demand for gas in the US would skyrocket.

And when things pick up in Europe and Asia, the price for gas will skyrocket in the US.

mike

Think about this? If Obama cant control gas prices then why did Obama and Biden and Obamas administration tell us we need gas prices the same as the European nations. When Carter was in office he told the same thing that gas was going to be $3.00 a gallon in the 1970s and put us on gas rotations per week. When Reagan took office he deregulated everything and you didnt hear of a gas problem anymore till Obama. Obama says drilling wont help us but ask others countrys to send us more gas for our prices would go down, see the lies?

George

Maybe unemployment will be over 25% by then, it is about 22.5% now.

mike

My friends that works in the employment office tells me that the Obamas Administration will not let the truth be told about how bad it is. They tell me it is close to 30% or over. They tell me that when he is out of office we then will know the truth how bad it was. They tell me Obamas administation wont let the real figures be published only the figures 8% so he can look like he has kept his promise that if he passes the stimulus that unemployment wont go over 8%. I sure hope people smartens up and sees the lies this president tells. This country has gone 36years with prosperity because of Reaganomics. Reagan deregulated everything that Carter and the Democrats put on America, Have You People Had Enough Of Hope And Change? Why on Gods earth would you Democrats want change like this? Are you Democrats proud? and happy to look at what you Democrats did to this ounce good country? People standing with no jobs, homes, food, and a president that says we arent doing that bad and blaming Bush,stars,trees,us,or anybody but his own failed pollices.

Highdesertcat

Mike, I'm no Obama fan but you better brace yourself for four more years of Obama, 'cause the dude has his re-election sewed up.

There aren't enough people that will vote for Romney and many voters will just stay home in November.

I'm an Independent, and I won't vote for Romney. My wife has relatives in Mass and their standard of living (fixed income) has plummeted because of Romney's policies and increased taxes.

So Obama or Romney? One is as bad as the other.

Better get used to the idea of four more years with Obama.

Max Reid

Read today's new guys. Oil price has shot up 7% and expect the gas prices to increase.

All these days it was lower because of Europe concerns, now that they are going towards fiscal union, Oil is also strengthening.

How many times are we going to get fooled by this false news of $3/gallon gas.

mike

Romney is a better choice, Obama wants gun controls. No manufacturing jobs, Obama is a Socialist President. Read Obamas gun control list and still no international ban treaty, on the web. Romney is still a better choice than Obama. I didnt vote last time becauce I didnt think the average American was going to put a man in office just because he was a black man, a historic moment. I will vote this next time for anybody but Obama, I like the other Republican canadates better but i guess Ronmey will have to get my vote. Read those gun controls on the web and what Eric Holder says that no American needs to own any firearm in there home. We will have more freedom with Romney than Obama, So we have to choose which overall will do better.I think we have seen the best of Obama and it pretty bad.

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