Over the past few weeks, crude oil prices have declined based on economic news, said Jessica Brady, manager of public relations for AAA Auto Club South, which tracks gas prices. Crude oil remained stable for the third consecutive week, because of concerns over the U.S. economic recovery and, in turn, the outlook for oil demand.
Poor housing numbers and a revised gross domestic product continue to indicate sluggish economic recovery. Weakness in the consumer sector has slowed U.S. energy demand growth. Crude oil prices have declined about $10 from a peak near $83 on August 14, to $75.32 at Friday’s close.
The national average price for regular grade gasoline dropped four cents this week to $2.68 a gallon Friday, a price not seen since February 24 of this year. That’s six cents higher than the same date last year, but still $1.43 less than the record of $4.11 set in July 2008. Gas prices have been low ever since Memorial Day weekend.
Triple “A” says while this time of year is one of the busiest times for travel it looks like you won’t pay as much at the pump. Gas prices have dropped for the past 17 days in a row. Analysts say supplies of oil and gas are up and the demand always drops after Labor Day. Prices are expected to continue the downward trend through September, all the way to $2.30 a gallon.
