US gas prices drop and expected to continue as oil prices fall

By on Aug 13, 2011 in Economy, Finance, United States Comments

Gas prices in the US drop and being expected to fall continuously until beyond Labor Day which is on September 5, and this is due to the dropping of oil prices.

Image Credit: Miguel Gutierrez/Getty Images

According to AAA Daily Fuel Gauge Report on Friday, August 12, 2011, the current average price of regular unleaded gas is $3.606 per gallon, as compared to Thursday’s $3.620 per gallon.

As noted, it was $3.700 last week and experts told reports that gas prices in the country will go cheaper and may reach to $3.50 a gallon or even lower.

However, the data showed that it was $2.776 a year ago which is relatively far from the current average price of gas; while the highest gas price ever recorded was $4.114 which happened on July 17, 2008.

On the other hand, the falling of gas prices was noted to be due to the oil price drop which was more than $10 within the past two weeks, following the up and down of stock market rates recently.

“We don’t know how much the price of gasoline will decrease in coming weeks, but we think the downward pressure will continue,” AAA spokesman Troy Green was quoted at Market Watch that day.

“After a year of bad luck with gas prices, consumers will see prices come down at the pump pretty dramatically in the coming weeks,” PFGBest Research energy analyst Phil Flynn said on the report.

“Oil is crashing because there is less demand for it. There haven’t been any really good economic signs that we can attribute to this,” Oppenheimer & Co. senior energy analyst Fadel Gheit at Los Angeles Times.

Nevertheless, some Americans which were quoted on reports said that the falling of gas prices may sound good news while others say this might be a great time for them to save money instead of buying cheaper gas.

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