Unusual Decline In Gas Prices As Memorial Day Approaches
by: David Pitman, May 24, 2010 8:05:00 pm
The average retail price for a gallon of gasoline in the Houston area fell by about six cents over the last week to $2.64.
"That's down about, y'know, 20 cents from our high earlier this May."
Patrick DeHaan is a Senior Petroleum Analyst for GasBuddy.com, which tracks gasoline prices. He says the debt crisis in Europe has made investors nervous, thus bringing down the cost of crude oil.
"And, you know, looking at the fundamental side of things, investors see more-than-adequate supply. Gasoline stockpiles are actually 6% higher than even a year ago."
DeHaan says retail gasoline prices still have some room to come down to match the decline in wholesale prices. He expects prices to continue falling for the next two or three weeks, then remain relatively stable until August.
"I would suggest that if motorists are thinking about taking a vacation, to take it earlier in the summer. We're looking forward to the hurricane season, and it's forecast to be a little more active. And we all can remember the days after Hurricane Katrina when prices went up 40 cents almost overnight."
Even though pump prices have fallen about 20 cents per gallon this month, they're still almost 40 cents higher than this time last year.