Gasoline could drop 50 cts/gln by spring: AAA

[RWSchilz]

NEW YORK (Reuters) - High U.S. gasoline prices and the threat of a recession have led to anemic motor fuel demand that could give drivers a break of 50 cents a gallon at the pump by the spring, according to motor club AAA on Wednesday.

U.S. gasoline supplies hit a near 14-year high of 227.5 million barrels last week, helped by falling demand for the fuel, the U.S. Energy Information Administration said on Wednesday. Gasoline demand over the last four weeks averaged about 1 percent more than the same period last year, it said. U.S. demand growth for the fuel has typically averaged about 1.5 to 2 percent a year and been one of the great drivers of global oil markets.

http://www.reuters.com/article/domesticNews/idUSN0628259020080206?feedType=RSS&feedName=domesticNews&rpc=22&sp=true

I Will believe it when I see it.:)

[lyngraphics]

:yeah:yeah:yeah:yeah:yeah:yeah
Gas prices make me want to :fear and our gas is cheaper than a lot of other places!

[jds6958]

I believe it will be a pricing battle between falling demand and inflationary pressures. Eventually inflationary pressures will bring gas to new highs, but in the near term the recessionary pressures may deflate gas for the time being. I believe summer may generate unpresidented highs but it may too premature to say at this point...

[Nova]

So they are projecting gas will be $2.50/gal in the Spring because of reduced demand. Maybe. Call me doubtful. I still think gas prices will rise. I'm watching what OPEC does with the dollar.

By the way, has it been a mild winter? (And thus lower demand for heating fuel.)