Gasoline prices are falling. Now the question is how low will they go?
Here's what Gasoline prices log biggest weekly decline in almost four years says:
"The national average price of gasoline has dropped 12.5 cents a
gallon from a week ago to mark the largest weekly decline since December
2008, AAA said on Tuesday.
The average price has fallen to $3.648 a gallon Tuesday, from $3.773 on Oct. 16.
National prices have also declined for 12 days in a row, tallying a
decline of 16.5 cents a gallon for the period. That was the longest
streak of consecutive declines since July 2, AAA spokesman Michael Green
said in an email. . . .
“Gas prices generally drop after the end of the summer driving
season, but factors such as Hurricane Isaac and regional refinery
disruptions delayed the lower prices anticipated by motorists,” said
“Gasoline supplies are now increasing in many parts of the country at
a time when demand declines, oil prices drop and refineries produce
less expensive winter-blend fuels,” he said. “The fundamentals of supply
and demand should continue to bring down gas prices into the
Given that, Green said gas prices should “drop through both Election
Day and Thanksgiving, and there is an outside possibility that gas
prices may drop below year-ago levels sometime in November.”
Even so, “gas prices remain the highest ever for this time of year
and are 19 cents [a gallon] more expensive on average than this day last
year. The national average price of gasoline has broken daily record
highs every day since August 20,” he said."
To add further "fuel to the fire," today oil prices per barrel are down another $2.32 to $86.34, or 2.5%.
If the economy stays at stall speed, which I expect it will, energy prices may have considerably further to fall.
Add in some energy development initiatives on our part, and energy prices could very well be in a longer term secular decline.
That would be good news for both American consumers and the broader U.S. economy as a whole.