Gasoline prices could keep falling - Sitcoms Online Message Boards

Janice · 08-30-2006, 08:20 PM

Gasoline prices could keep falling

By James R. Healey, USA TODAY

Gasoline prices are falling fast and could keep dropping for months.

"The only place they have to go is down," says Fred Rozell, gasoline analyst at the Oil Price Information Service (OPIS). "We'll be closer to $2 than $3 come Thanksgiving."

Travel organization AAA foresees prices 10 cents a gallon lower by the end of next week. It reported a nationwide average of $2.84 Tuesday, the lowest since April 20.

PRICE HAPPY: OPEC president says $70 a barrel oil price is satisfactory

It's good news for consumers and the economy. Continued lower prices "may act like a tax cut" and stimulate spending, says Richard DeKaser, chief economist at National City in Cleveland. He calculates that higher energy prices the first six months cut growth of consumer spending 1 percentage point.

The U.S. average for a gallon of regular peaked this year at $3.036 Aug. 10, according to OPIS/AAA daily surveys. That's slightly under the high of $3.057 Sept. 5, a week after Hurricane Katrina battered petroleum production in the Gulf of Mexico and caused fears of fuel shortages.

OPIS' Rozell figures prices will jump again next spring.

Behind the current drop:

•The end of summer. Driving slows, reducing demand for gasoline. And federal requirements for clean air, summer-blend gasoline end next month, making gasoline cheaper to refine and import.
•Sluggish demand. Gasoline use in the first eight months of the year is up 1% vs. a year ago, less than the 1.5% to 2% growth that's typical, says Michael Morris, analyst at the U.S. Energy Information Administration. "Wholesalers are trying to get rid of product. The growth in demand for gasoline has really tapered off," he says.
Wholesale prices are falling faster than retail gasoline prices, meaning stations are making more money than when prices were $3. Wholesale prices Tuesday ranged from $1.77 to $1.79 a gallon, well below the $2-plus prices typical until recently.
•Petroleum traders, worried that prices are too high to last, are selling their holdings. That pushes prices down. They also believe hurricanes won't disrupt Gulf of Mexico production, OPIS senior analyst Tom Kloza says.

Crude oil, which accounts for roughly half the price of gasoline, ended New York trading Tuesday down 90 cents, at $69.71 a barrel. That's the first time it's closed at less than $70 since May 4.

Number 9 Dream · 08-30-2006, 08:22 PM

That makes me sooooo happy!

I saw it at $2.99 a gallon today and I freaked

Kay Scarpetta · 08-30-2006, 08:26 PM

Quote:

Originally Posted by Number 9 Dream

That makes me sooooo happy!

I saw it at $2.99 a gallon today and I freaked

$2.99?! I've got $2.72 down the street.

Courtnee · 08-30-2006, 08:32 PM

we've got it for $1.89 on base.

Kay Scarpetta · 08-30-2006, 08:36 PM

Quote:

Originally Posted by Rock Princess

we've got it for $1.89 on base.

Another reason to join the Army. Damn, I'm starting to make a list...

TJL · 08-30-2006, 08:49 PM

I guess they no longer have to gouge us for filling up the tank for the long trips to the beach...

theshark8777 · 08-30-2006, 09:24 PM

It's $2.40 at some places around here.

$70 a barrel is satisfactory? I remember when they said $30 was good, and that was only a few years ago.

Jonathan · 08-30-2006, 09:25 PM

Nice to hear that. Hopefully the prices continue to fall.

MsOrange · 08-30-2006, 09:33 PM

2.40 here... i was so happy!

passionsfan79 · 08-30-2006, 09:41 PM

That is good news I think its 2.99 here where I live

Brian Damage · 08-30-2006, 09:55 PM

The lowest I've seen it so far is $2.77. I have been waiting for it to jump back up again.

gilligan fanatic · 08-30-2006, 10:46 PM

YAY, I can buy more TV DVDs now

Chelsea · 08-30-2006, 10:55 PM

$2.58/gal here in Bowling Green, KY

Czas na Zywiec · 08-31-2006, 01:40 AM

wow, you people are lucky. It's still holding on to $3.09 here. and that's the absolute cheapest for midgrade.

80sTrivia · 08-31-2006, 03:53 AM

I've been buying gas in $2.65 per gallon range for the past week!!!

08-30-2006, 08:20 PM	#1
Janice Retired Admin - Hollywood Swingin' Forum Legend Join Date: Aug 03, 2001 Location: Beantown Posts: 36,388	Gasoline prices could keep falling Gasoline prices could keep falling By James R. Healey, USA TODAY Gasoline prices are falling fast and could keep dropping for months. "The only place they have to go is down," says Fred Rozell, gasoline analyst at the Oil Price Information Service (OPIS). "We'll be closer to $2 than $3 come Thanksgiving." Travel organization AAA foresees prices 10 cents a gallon lower by the end of next week. It reported a nationwide average of $2.84 Tuesday, the lowest since April 20. PRICE HAPPY: OPEC president says $70 a barrel oil price is satisfactory It's good news for consumers and the economy. Continued lower prices "may act like a tax cut" and stimulate spending, says Richard DeKaser, chief economist at National City in Cleveland. He calculates that higher energy prices the first six months cut growth of consumer spending 1 percentage point. The U.S. average for a gallon of regular peaked this year at $3.036 Aug. 10, according to OPIS/AAA daily surveys. That's slightly under the high of $3.057 Sept. 5, a week after Hurricane Katrina battered petroleum production in the Gulf of Mexico and caused fears of fuel shortages. OPIS' Rozell figures prices will jump again next spring. Behind the current drop: •The end of summer. Driving slows, reducing demand for gasoline. And federal requirements for clean air, summer-blend gasoline end next month, making gasoline cheaper to refine and import. •Sluggish demand. Gasoline use in the first eight months of the year is up 1% vs. a year ago, less than the 1.5% to 2% growth that's typical, says Michael Morris, analyst at the U.S. Energy Information Administration. "Wholesalers are trying to get rid of product. The growth in demand for gasoline has really tapered off," he says. Wholesale prices are falling faster than retail gasoline prices, meaning stations are making more money than when prices were $3. Wholesale prices Tuesday ranged from $1.77 to $1.79 a gallon, well below the $2-plus prices typical until recently. •Petroleum traders, worried that prices are too high to last, are selling their holdings. That pushes prices down. They also believe hurricanes won't disrupt Gulf of Mexico production, OPIS senior analyst Tom Kloza says. Crude oil, which accounts for roughly half the price of gasoline, ended New York trading Tuesday down 90 cents, at $69.71 a barrel. That's the first time it's closed at less than $70 since May 4.

08-30-2006, 08:22 PM	#2
Number 9 Dream That '70s Girl Forum Veteran Join Date: Jan 18, 2005 Location: Long Island, NY Posts: 5,875	That makes me sooooo happy! I saw it at $2.99 a gallon today and I freaked
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08-30-2006, 08:32 PM	#4
Courtnee MAN VS SAMMICH. Forum Star Join Date: Mar 23, 2005 Location: Louisiana Posts: 16,413	we've got it for $1.89 on base.
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08-30-2006, 08:49 PM	#6
TJL Suburbanite Extrordinaire Forum Star Join Date: Dec 29, 2001 Location: New Jersey - the cradle of civilization Posts: 16,588	I guess they no longer have to gouge us for filling up the tank for the long trips to the beach...
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08-30-2006, 09:24 PM	#7
theshark8777 Hats for Bats Forum Veteran Join Date: Jan 23, 2001 Location: northeast Ohio. Posts: 5,315	It's $2.40 at some places around here. $70 a barrel is satisfactory? I remember when they said $30 was good, and that was only a few years ago.
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08-30-2006, 09:25 PM	#8
Jonathan ***** Senior Member** Join Date: Aug 28, 2004 Posts: 2,304	Nice to hear that. Hopefully the prices continue to fall.

08-30-2006, 09:33 PM	#9
MsOrange Bringin' Sexy Back Forum Veteran Join Date: Dec 27, 2004 Posts: 6,133	2.40 here... i was so happy!

08-30-2006, 09:41 PM	#10
passionsfan79 Proud to be Sara fan Senior Member Join Date: Sep 13, 2002 Location: MN Posts: 2,265	That is good news I think its 2.99 here where I live
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08-30-2006, 09:55 PM	#11
Brian Damage I'm Rich Bitch Forum Icon Join Date: Feb 03, 2002 Location: What Ain't No Country I Ever Heard Of...They Speak English in What? Posts: 63,107	The lowest I've seen it so far is $2.77. I have been waiting for it to jump back up again.
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08-30-2006, 10:46 PM	#12
gilligan fanatic Born to Be Bad Forum Fanatic Join Date: May 06, 2001 Location: down by the Lagoon Posts: 9,954	YAY, I can buy more TV DVDs now
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08-30-2006, 10:55 PM	#13
Chelsea Semi-retired Forum Veteran Join Date: Jan 07, 2001 Location: Washington Posts: 5,727	$2.58/gal here in Bowling Green, KY
	__________________ Chelsea Former Administrator, 2005-2012 Former Member, DVD Review Team, 2004-2010.

08-31-2006, 01:40 AM	#14
Czas na Zywiec what up Forum Star Join Date: Jun 28, 2001 Location: Southwest Side, Chicago Posts: 18,398	wow, you people are lucky. It's still holding on to $3.09 here. and that's the absolute cheapest for midgrade.

08-31-2006, 03:53 AM	#15
80sTrivia Member Forum Celebrity Join Date: May 23, 2002 Posts: 21,714	I've been buying gas in $2.65 per gallon range for the past week!!!
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