Wednesday, August 30, 2006

Gasoline prices could keep falling

James R. Healey

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.

Behind the current drop:

The end of summer. Driving slows, reducing demand for gasoline.
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...
Petroleum traders, worried that prices are too high to last, are selling their holdings. That pushes prices down.

article here

I'm sure the upcoming November elections are a factor too. Big oil and rethuglicans aren't JUST bed-buddies... they're one and the same!