Gas prices continue to drop

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Could we see $3 a gallon gas again?

The jury is out, but the price at the pump dropped toward $3.20 a gallon in Delaware and Maryland’s Eastern Shore.

In its weekend report, Wilmington-based AAA Mid-Atlantic reported the national

national average price for regular grade gasoline dropped to $3.32 Friday.  This price is four cents lower than one week ago, 13 cents less than one month ago and 28 cents less than the same day last year.

A quick check of prices on Sunday posted by AAA Mid-Atlantic many stations below $3.25 a gallon, with a couple of stations in neighboring Elkton, Maryland coming in at $3.20. This comes despite the fact that gas taxes are higher in Maryland.

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AAA noted that the last time the national average registered less than $3.34 per gallon was January 22, when prices later rose nearly 59 cents in 41 days toward a 2013 high of $3.79 per gallon on February 27.

After nearly 16 straight weeks (since July 2) above $100 per barrel, the price of crude oil dropped below the triple-digit threshold last week. The downward spiral continued throughout the week, with the commodity shedding more than five percent in value.

Increasing crude oil stockpiles, refinery turnarounds and increased oil production combined to push oil prices lower. Analysts say the declines could continue. Crude oil closed at $97.85 Friday, down three percent on the week and the lowest close since July 1.

“Despite the recent pause in the decline, AAA continues to expect that gas prices will fall even further approaching the end of the year,” said Jana L. Tidwell, public affairs specialist for AAA Mid-Atlantic.  “Sufficient supplies, flat demand and the shift to cheaper winter-blend gasoline, and barring a hurricane or other unexpected disruption to production and distribution, the national average is likely to fall to $3.10 to $3.20 per gallon by Christmas, which would be the lowest mark since February 2011.”

Motorists are likely to see gas prices drop closer to the $3.00 mark for the remainder of the year.  Prices at the pump declined significantly in recent months, despite crude oil prices remaining above the $100 threshold.  However, now that crude oil prices are dropping analysts believe we could soon see gas prices drop to the lowest levels since the Arab spring in February 2011 when prices dropped to a national average of $3.20 a gallon, AAA Mid-Atlantic reported.

 

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