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Home Front Economy
Oil's 2-week nosedive shows up at the pump
2008-07-26
NEW YORK (AP) -- Whether or not any bubble has burst, Americans now live in an economy where the prospect of a gallon of gas for less than $4 is cause for relief. That barrier may be broken as early as this weekend, as a two-week nosedive in crude prices begins to ripple out to gas stations nationwide.

The national average for a gallon of regular pulled back to just above $4 a gallon and oil tumbled to its lowest point in weeks Friday on the belief that prices have yet to reflect just how badly demand has deteriorated in the United States, the world's thirstiest oil consumer.
Gas is down 15 cents a gallon in the last three weeks in my neighborhood.
Prices at the pump are poised to dip even further, and could cost as much as 25 cents less by Labor Day, AAA spokesman Geoff Sundstrom said. "People say typically prices shoot up like a rocket, fall like a feather. But this time ... it looks like it's different," Sundstrom said. "The retail sector is interested in bringing these prices down as fast as they can to stimulate business in their convenience stores."

In the trading pits, oil continued on a two-week sell-off. Light, sweet crude for September delivery fell $2.23 to settle at $123.26 a barrel in on the New York Mercantile Exchange. Earlier the contract dropped as far as $122.50, its lowest point since June 5.

Many analysts say the market's momentum points to further declines. Crude has fallen in seven of the last nine sessions, and is down more than 16 percent from its peak above $147 a barrel earlier this month. "There's just nothing sufficiently bullish coming into the market right now to sustain a rally," said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates. "We're just seeing a new theme in which demand has become a very important part of the equation."
Posted by:Steve White

#27  Gas at tip of little finger of Michigan was $4.399/gal on Thurs. 30 miles away it was $3.999/gal.
Posted by: Anguper Hupomosing9418   2008-07-26 22:42  

#26  100LL avgas in Birchwood, near Anchorage 5.96/gal, at Galena Airport 8.29, OUCH!
Posted by: Alaska Paul    2008-07-26 20:34  

#25  $3.879 for premium in Northeast Ohio.
Posted by: Mike   2008-07-26 17:36  

#24  thx Jan :-)

the boat is staying home - boat gas is around $7 on the lake

Posted by: Frank G   2008-07-26 16:43  

#23  Sorry for off topic
Not many family members going to my family reunion in Tahoe this year due to gas prices with their Winnebago type vehicles getting poor gas mileage. I'm also staying home, doing the work vacation getting stuff done around the house.
It would have been fun to try connecting with you again Frank as it sounds like you're going out that way again. Have a great time, Tahoe is beautiful Jan
Posted by: Jan    2008-07-26 16:31  

#22  good site, thx. Helps me plan my fuel stops on vacation in a couple weeks. Highest appears to be in Bishop, CA and So. Lake Tahoe... about $4.49-$4.59....hopefully it will keep going down
Posted by: Frank G   2008-07-26 16:15  

#21  Diesel is at 5.05 to 5.22 a gallon.
Posted by: anymouse   2008-07-26 15:41  

#20  "
gasbuddy.com

Helped me save $.30 a gallon."

Good tip! And don't forget to zoom in! Gas station by gas station MAP of prices in your area!
Posted by: Bin thinking again   2008-07-26 15:19  

#19  Paid $3.64 outside Richmond, Va., on Friday.
Posted by: Barbara Skolaut   2008-07-26 15:13  

#18  ...$3.60 in Cayce, SC (just outside of Columbia) and the manager says he expects $3.50 by the end of next week.
God, I love capitalism. That's because, unlike so many of my elected representatives, I understand how it works.

Mike
Posted by: Mike Kozlowski   2008-07-26 14:58  

#17  It's simple. Raise the cost of crude high enough and everything will become so expensive that all the businesses will have to shut down. Whey they lay off their workers, the workers won't have to drive anymore and demand will plummet.
Posted by: Abu Uluque   2008-07-26 14:36  

#16  For help in your area:

gasbuddy.com

Helped me save $.30 a gallon.

Posted by: Frozen Al   2008-07-26 13:50  

#15  Proc - bingo.

George announce lifting the executive ban, and the top end came off the market. Furutes have been staedily unwinding since, and its down at the sport market now, Just as I predicted.

Now if they announce actually drilling bills and pass them, then you'll see another drop to $100, and the prices will then becoem very steady, without the cheap credit backed speculators artificially inflating the cost of a contract.
Posted by: OldSpook   2008-07-26 12:16  

#14  When did George announce the lifting of the Executive Order on drilling and when did the price start to dive on the 'futures' market?
Posted by: Procopius2k   2008-07-26 11:46  

#13  Panic at $4.00 boom at $3.50. The bi-polar world of the American consumer. Check your depreciation and insurance.
Posted by: .5MT   2008-07-26 11:46  

#12  $3.79 in suburban D.C. Thanks Harry and Nancy!
Posted by: Bobby   2008-07-26 11:07  

#11  "The oil companies and speculators were afraid that congress might eventually pass legislation against them."



THIS Congress? Bwha-ha-ha-ha-ha!



Thanks for the laugh, Harry.
Posted by: Steve White   2008-07-26 10:12  

#10  A week or two after the chorus of voices praised W. Bush for causing the price drop, which happened immediately after he acted, I just saw Harry Reid claim credit for it, by saying that "The oil companies and speculators were afraid that congress might eventually pass legislation against them."

A day late and a dollar short, Dingy.
Posted by: Anonymoose   2008-07-26 09:56  

#9  "W" could gain a few yards if he asked the American people to... voluntarily stay to the RIGHT and drive SLOWER, possibly 55. He could also demand that the far left lane of 4 lanes and interstates be restricted to heavy trucks and that folks yield to oncoming traffic from behind them. I know this would be revolutionary and possibly racist and discriminatory here in the Fulton Co. area, but in time (200-300 years), natives locals would catch on.
Posted by: Besoeker   2008-07-26 09:10  

#8  More, cheaper, efficient and diverse energy.
Posted by: DarthVader   2008-07-26 08:40  

#7  We DO need to drill in the US. But any policy change will have to wait until November, at least. For the near to mid term though, it's a moot point. With crude at $100+, every OTHER country on the planet is drilling like mad (not to mention ripping down rainforests to plant oil crops) and all the manpower and drilling rigs are already under contract. If and when US policy does change, we will have to wait our turn for drilling teams.

The good news is extra supply is "in the pipeline".
The bad news is that we'll have to import it.

We really do have to start drilling here.
Posted by: Bin thinking again   2008-07-26 08:38  

#6  To keep the price dropping we need to continue to move toward more drilling and maintain reduced demand. We're down about 2% on demand which could disappear quickly if reduced prices encourage more consumption.
Posted by: Keystone   2008-07-26 08:21  

#5  may the Politicians and Lawyers eat my olde nasty shorts.
Posted by: Red Dawg   2008-07-26 03:06  

#4  North San Mateo Peninsula..

High 4.80 reg 3-4 weeks ago

Today 4.60 or so...

Posted by: Red Dawg   2008-07-26 03:03  

#3  Regular gasoline is 4.40 a gallon in Anchorage, Alaska. However, in western and NW Alaska villages served by barge, gas goes from $7.00 to $8.00 per gallon and it won't go down until next year's barge shows up in spring or early summer.
Posted by: Alaska Paul   2008-07-26 02:19  

#2  I never paid more than $3.90/gal here in the DFW area. Already it has pulled back to $3.80/gal or lower.

Drill Here! Drill Now!
Posted by: Skunky Slereng5720   2008-07-26 01:00  

#1  "Just above four dollars" > Still US$4.84 this AM here in Guam.

D *** NG IT, I WANT TO BELIEVE!
Posted by: JosephMendiola   2008-07-26 00:31  

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