Gas Prices Likely Will Keep Dropping
That's what
this USA Today article is suggesting. Here's the main section of the article:
Posted Thursday, August 31, 2006 8:17 AM
July 2006 Posts
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"The only place they have to go is down," says Fred Rozell, gasoline analyst at the Oil Price Information Service (OPIS). "We'll be closer to $2 than $3 come Thanksgiving." Travel organization AAA foresees prices 10 cents a gallon lower by the end of next week. It reported a nationwide average of $2.84 Tuesday, the lowest since April 20.When AAA makes gas price predictions, it's usually a reliable forecast. The other forecasts seem to be bolstered by anecdotal evidence of dropping prices at the pump. It might also signal a drop in demand caused by an economic slowdown. We'll have to see if what's causing the drop. Either way, it's welcomed.
It's good news for consumers and the economy. Continued lower prices "may act like a tax cut" and stimulate spending, says Richard DeKaser, chief economist at National City in Cleveland. He calculates that higher energy prices the first six months cut growth of consumer spending 1 percentage point.
Posted Thursday, August 31, 2006 8:17 AM
July 2006 Posts
No comments.