The real deal: Gas prices likely to stay low

By Jolene Guzman, Staff Writer
Saturday, December 13, 2008 | No comments posted.

Font Size: Shrink Font Enlarge Font | Submit your news

Related Links

Thinking low gas prices will go back up as fast as they went down?

Think again.

“At this point, that is not going to happen,” AAA spokeswoman Marie Dodds said.

She said the prices may rise a little, but the U.S. Department of Energy predicts the average price of gas in 2009 will hover around $2 a gallon and per-barrel prices around $51. A global decrease in demand for oil and the slipping economy are responsible for the plummeting price, Dodds said.

Global oil consumption was expected to drop by 500,000 barrels a day this year, according to the Department of Energy, and 2009 could see consumption drop another 450,000 barrels a day.

“This would be the first time since the late 1980s that world consumption would decline for two consecutive years,” according to an AAA press release.

The auto club is a little more reserved about its predictions. The release said the direction of prices may not be clear until the spring of 2009, just before the traditional summer price jump. Dodds said only a quick economic recovery will drive prices back up to record levels any time soon.

She said the Organization of Petroleum Exporting Countries may decide to cut production at its Dec. 17 meeting, which would add upward pressure to the price of oil.

Average prices statewide have gone down by almost $2.50 a gallon since reaching record highs above $4 in July. The price per barrel dropped $100 since the record high on July 11 of $147.

Thursday, average costs per barrel of oil rose to $48.

“Who knew after hitting a record high, oil would lose $100 a barrel in five months,” Dodds said.
Previous

Have you checked out The World Link Forums?

Comments

The comments below are from users of theworldlink.com and do not necessarily represent the views of The World or Lee Enterprises. Participation Guidelines

Note: There is a maximum of 200 words per comment. If you wish to post more, please visit our forum.
Comment Policy

The World welcomes your comments about stories, and we encourage a robust dialogue on this site. All comments must meet reasonable standards of decency and civility.

Please follow these basic rules:

  • No defamatory comments about individuals or businesses.
  • No deliberately false information.
  • No obscenity or racially offensive language.
  • No harassment, verbal abuse, threats or personal attacks.
  • No information that invades another person's privacy.
  • No business solicitations or charitable solicitations.
Comments that violate these standards will not be posted. Users with repeated violations may be banned from future posting.

Comments will be approved throughout the day during business hours. After hours and weekend comments may not appear until the following business day. It may take a couple of hours before comments are approved.

The World generally does not edit comments, but we reserve the right to edit any comment that does not meet our standards.

Close Guidelines

No comments posted.


*Member ID:
*Password:
 

Not already registered?

Do not use usernames or passwords from your financial accounts!

Note: Fields marked with an asterisk (*) are required!



*Create a Member ID:
*Choose a password:
*Re-enter password:
*E-mail Address:
*Year of Birth:
 

(children under 13 cannot register)

*First Name:
*Last Name:
Would you like to be added to our mailing lists?
Daily Headlines
Breaking News
Special Offers
 
Advanced Search
Web Search powered by YAHOO! SEARCH

Blogroll

Most Popular

Polls

» View Past Poll Results
» Suggest a Poll

Marketplace

Special Sections

More Special Sections