Is gas headed below $3 a gallon?
The fourth quarter generally brings lower prices at the pump, experts say.
By Kim Peterson Jun 21, 2012 5:47PM
After a mini-crisis at the pump earlier this year, gasoline prices are dropping quickly. The national average for a gallon of regular is $3.47, down from $3.53 a week ago and $3.68 a month ago.
To top it off -- pun fully intended -- oil (-CL) fell to $77.96 a barrel Thursday. Even with the summer driving season on the way, do we dare imagine that gas could drop below $3 a gallon?
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Yes, say two experts interviewed by CNBC. But keep in mind that oil is probably already near its low for the summer. "I think we've reached pretty much the objective that anyone could have foreseen here," said Jeffrey Grossman, the president of BRG Brokerage. "I think we're going to see a market that will probably work its way . . . higher."
But even though oil may bottom out, gas prices could head further south. "I think we'll see a lot of states with sub-$3-a-gallon gasoline in the next few weeks," said Tom Kloza, a co-founder of the Oil Price Information Service.
With two heated presidential campaigns under way, political observers will be watching gas prices headed into November. But the fourth quarter generally brings lower gasoline prices -- a relief for President Barack Obama.
"People will put together all sorts of conspiracy theories to that," Kloza said. "But it has to do with how much easier it is to make that fuel once we get out of the summer."
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To top it off -- pun fully intended -- oil (-CL) fell to $77.96 a barrel Thursday. Even with the summer driving season on the way, do we dare imagine that gas could drop below $3 a gallon?
Post continues below.
Yes, say two experts interviewed by CNBC. But keep in mind that oil is probably already near its low for the summer. "I think we've reached pretty much the objective that anyone could have foreseen here," said Jeffrey Grossman, the president of BRG Brokerage. "I think we're going to see a market that will probably work its way . . . higher."
But even though oil may bottom out, gas prices could head further south. "I think we'll see a lot of states with sub-$3-a-gallon gasoline in the next few weeks," said Tom Kloza, a co-founder of the Oil Price Information Service.
With two heated presidential campaigns under way, political observers will be watching gas prices headed into November. But the fourth quarter generally brings lower gasoline prices -- a relief for President Barack Obama.
"People will put together all sorts of conspiracy theories to that," Kloza said. "But it has to do with how much easier it is to make that fuel once we get out of the summer."
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