U.S. average gas prices drop below $1.25 by June 2009?

David Kuan — Wed, 07 Jan 2009 13:15:37 -0500

The average gasoline price at the pump has plummeted as the U.S. recession rapidly worsens. As of January 5, 2009, the average cost of a gallon of regular gasoline was $1.42 less than a year ago.

As the U.S. recession deepens and spreads globally, international demand could weaken further. As consumer spending power drops, crude oil prices could fall even further, which could translate to even lower gasoline prices at the pump. This assumes a lack of any major refinery disruptions due to wars, natural disasters, terrorism, pipelines being turned off (as seen in the dispute between Russia and Ukraine over natural gas prices), and so on.

Some analysts believe that $20/barrel crude oil is entirely possible which would push gasoline prices down to levels not seen in several years, if not decades. With crude oil prices accounting for about 59% of the gasoline price, gasoline prices may likely drop below $1.25/gallon if crude oil drops to about $30/barrel.

Using an interesting application known as the Gas Calculator, a $30 barrel of crude makes approximately $1/gallon. "It takes 3-6 months for crude oil to make its way through the refining process and make it into gasoline that you buy at the pump. Due to this delay, you may not see an immediate jump in pump prices. "

Prediction: Will the U.S. average cost of a gallon of regular gasoline decline below $1.25/gallon at any time between now and May 31, 2009? Judgment will be made based on figures from Energy Information Adminstration. (Prediction edited by The Industry Standard. Image: The Industry Standard)

Let the community decide. Place your bets!

U.S. average gas prices drop below $1.25 by June 2009?

David Kuan — Wed, 07 Jan 2009 13:15:37 -0500

The average gasoline price at the pump has plummeted as the U.S. recession rapidly worsens. As of January 5, 2009, the average cost of a gallon of regular gasoline was $1.42 less than a year ago.

Let the community decide. Place your bets!

U.S. average gas prices drop below $1.25 by June 2009?

David Kuan — Wed, 07 Jan 2009 13:15:37 -0500

The average gasoline price at the pump has plummeted as the U.S. recession rapidly worsens. As of January 5, 2009, the average cost of a gallon of regular gasoline was $1.42 less than a year ago.

Let the community decide. Place your bets!

U.S. average gas prices drop below $1.25 by June 2009?

David Kuan — Wed, 07 Jan 2009 13:15:37 -0500

The average gasoline price at the pump has plummeted as the U.S. recession rapidly worsens. As of January 5, 2009, the average cost of a gallon of regular gasoline was $1.42 less than a year ago.

Let the community decide. Place your bets!

U.S. average gas prices drop below $1.25 by June 2009?

David Kuan — Wed, 07 Jan 2009 13:15:37 -0500

The average gasoline price at the pump has plummeted as the U.S. recession rapidly worsens. As of January 5, 2009, the average cost of a gallon of regular gasoline was $1.42 less than a year ago.

Let the community decide. Place your bets!

U.S. average gas prices drop below $1.25 by June 2009?

David Kuan — Wed, 07 Jan 2009 13:15:37 -0500

The average gasoline price at the pump has plummeted as the U.S. recession rapidly worsens. As of January 5, 2009, the average cost of a gallon of regular gasoline was $1.42 less than a year ago.

Let the community decide. Place your bets!

U.S. average gas prices drop below $1.25 by June 2009?

David Kuan — Wed, 07 Jan 2009 13:15:37 -0500

The average gasoline price at the pump has plummeted as the U.S. recession rapidly worsens. As of January 5, 2009, the average cost of a gallon of regular gasoline was $1.42 less than a year ago.

Let the community decide. Place your bets!

U.S. average gas prices drop below $1.25 by June 2009?

David Kuan — Wed, 07 Jan 2009 13:15:37 -0500

The average gasoline price at the pump has plummeted as the U.S. recession rapidly worsens. As of January 5, 2009, the average cost of a gallon of regular gasoline was $1.42 less than a year ago.

Let the community decide. Place your bets!

U.S. average gas prices drop below $1.25 by June 2009?

David Kuan — Wed, 07 Jan 2009 13:15:37 -0500

The average gasoline price at the pump has plummeted as the U.S. recession rapidly worsens. As of January 5, 2009, the average cost of a gallon of regular gasoline was $1.42 less than a year ago.

Let the community decide. Place your bets!

U.S. average gas prices drop below $1.25 by June 2009?

David Kuan — Wed, 07 Jan 2009 13:15:37 -0500

The average gasoline price at the pump has plummeted as the U.S. recession rapidly worsens. As of January 5, 2009, the average cost of a gallon of regular gasoline was $1.42 less than a year ago.

Let the community decide. Place your bets!