Gas prices have been dropping for a month. According to the chief oil analyst with the Oil Price Information Service in this radio interview, expect prices to continue dropping to as low as $3.25 a gallon, but don't expect lower than $3.00.
On Weekend Edition, June 19, the NPR reporter notes that "the national average for a gallon of regular fuel is now $3.65. That's around 25 cents less than a month ago."
Tom Kloza, chief oil analyst with the Oil Price Information Service "suspects that most of the country is going to see $3.25 to $3.75 during the summer".
However, he warns that prices could spike due to "supply disruptions, particularly with unrest in the Middle East" or even go lower "if sovereign debt worries turn into a worldwide contagion and you see a recession in Europe or in the United States". Current fears about Greek debt already have caused "oil prices drop below $93 per barrel".
How will American car buyers react to dropping gas prices?
The Alliance of Automobile Manufacturers is pushing to "link federal fuel-economy and emissions targets to the price of gasoline, saying consumers won't pay enough for fuel-efficient cars to make them profitable if gas prices aren't high."
FULL STORY: Gas Prices Ease For Summer, But Don't Relax Yet
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