Gas Prices Drop for the 7th Week in a Row

More relief for drivers in the U.S., gas prices are dipping lower for the 7th week in a row. The average price for gas in the U.S. is $3.67 a gallon for regular unleaded.

Crude oil prices are down 25%, now at a five-month low. It reached its all-time high of $147.27 in July. Analysts predicted in May that crude oil may top $200 a barrel, but the current price of $109 a barrel tells a different story.

The same economists who predicted the continued rise in the price of oil say that the direction of fuel prices could change again, if the oil-producing countries decide to limit their production.


Contributing to the drop in gas prices:

• Hurricane Gustav temporarily shut down much of the natural gas and crude oil production in the Gulf of Mexico, but has done less damage than was anticipated.

• The dollar continues to strengthen; fewer investors are buying commodities and pushing up the price of oil.

• The demand for fuel is down. According to the U.S. Department of Transportation, U.S. drivers have driven 53.2 billion miles less than they have during the same period last year.
  
  Sources:
  money.cnn
  abcNEWS