How Low Can Gas Go? - KLTV.com - Tyler, Longview, Jacksonville |ETX News

10/11/06

How Low Can Gas Go?

Pain at the pump may be alleviated in the coming months.  (AP Photo ) Pain at the pump may be alleviated in the coming months. (AP Photo )
New figures show the average price of a gallon of gas went down by a nickel last week, the ninth straight week of gas price declines.

In the last two months, the national average has plunged more than 75 cents, to $2.26 a gallon.

Across the country, oil and gas experts say Americans may see prices continue to drop for weeks, if not months.

That could change however after today's announcement by the oil producing cartel OPEC that it would cut crude oil production by 1 million barrels a day by the end of the month.

Other factors that could affect prices include severe weather this winter and a rise in Mideast tensions.

Drop Welcome After Months of Pain at the Pump

Just months ago, gas prices were soaring - with a war in Lebanon and fears of a possibly horrific hurricane season.

Back then, people were hawking their valuables, even selling their blood to buy a tank of gas.

In some spots, prices reached a wallet-whopping $4 a gallon.

In August, the national average for a gallon of regular gas spiked to more than $3.

The highest prices are out in California; the lowest, on the Gulf coast.

Prices May Fall Further

"We think prices will continue to decline until about mid-November, maybe the Thanksgiving Day holiday," said Robert Sinclair of AAA.

The price plunge pumps the economy, leaving more cash in the pockets of consumers and helping fuel record highs for the stock market.

Can prices go lower? Yes - experts are predicting them to drop 30 cents to 60 cents more.

"Sure, we could see them get down to $2 or less," said Jon Hilsenrath of The Wall Street Journal.

"It's a moment to breathe a little bit of a sigh of relief, but I wouldn't build your family budget around it," Hilsenrath said.

 

This story taken from ABC NEWS

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