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?

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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373Comments
Jun 21, 2012 10:12PM
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IM not a mathematician,but when oil was at $150 dollars a barrel a couple of years ago gas was $4 bucks a gallon.So now with the price of oil around $78 bucks a barrel  shouldn't gas be around $2 bucks a gallon?We are being screwed rued and tattooed at the pump! BIG OIL-THE SCURGE OF THE EARTH!!!!!!!!!!!!!!!!!!!!!!!!!!!
Jun 22, 2012 6:20AM
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4 months ago, they were talking about gas being over $6 a gallon, now these "analysts" are saying it will be under $3.  And people get paid to do this stuff??
Jun 22, 2012 1:30AM
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Im sorry, but when I hear the oil companies are making record profits, and people that work 40 hours a week at McDonalds have to blow a good portion of their paycheck filling up their cars to go to work, I have absolutely no excitement for prices going down. They should have never got so high to begin with. We are so stupid that we are getting EXCITED for gas under $3 a gallon. Do we realize that with the price per barrel it should at a maximum of $2 per gallon? We are getting super excited that we are only paying 33% over market price.
Jun 21, 2012 9:01PM
Jun 21, 2012 10:05PM
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I want to know why it ever went above $3.00 per gal?  We are stupid.
Jun 22, 2012 7:42AM
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Yesterday, I pulled up to get some gas and commented to my husband..."Wow, 3.59/gallon, that's CHEAP!"

 

And then it struck me...NO IT'S NOT!  They want you to think that's cheap...so they inflate the price as high as they think they can get away with,, then drop it halfway back to where it was before so you think you're getting a bargain.

 

Wake up people...gas won't be "cheap" until it's back down into the $2/gallon range, where it should be. 

Jun 21, 2012 9:54PM
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Funny - I live northwest of Chicago, and I see gasoline going down maybe a penny a week - but don't worry, as usual, the slightest uptick in oil prices will shoot it back up $.40 in a day!

Jun 22, 2012 11:26AM
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Gas goes up on Thursday and goes down on Sunday around here. No matter what the spot price of oil is. Sure looks like price fixing to me.
Jun 22, 2012 3:14AM
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Six month's or so, you people were preaching $5.00 gas was good for the country. What is the matter with you people do you have short memorys, or just stupid?
Jun 21, 2012 10:14PM
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Just like the "oil shortage" of the seventies, prices were always "rockets going up, but feathers floating down".
Jun 22, 2012 8:12AM
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$3 a gallon?  WOW!  Gas was at $4 a gallon when a barrel of crude was $150.  Now that it is less than $80 a barrel, gas should be around $1.50 a gallon.  When will we see honesty again in the gas industry?
Jun 22, 2012 11:17AM
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     This is one thing I watch pretty closely....the price of oil compared to the price of gas.  It was rather funny when oil took a jump late last year and the next day the price of gas jumped also, but when oil went down the price of gas did not change for at least a week.  Here is Kansas the price of gas has been rising this past week, we saw an $.08 jump from Tuesday to Wednesday and then another $.06 from Wednesday to Thursday...doesn't make sense.

     You can bet the ceo's of the oil companies are raking in the big bucks on this one.

Jun 21, 2012 11:11PM
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The price of crude oil per barrel on July 14, 2006 was $76.80, the price of gasoline on that same day was $2.30 a gallon.  The gas price source is USA Today, and the crude oil price source is nyse.tv.  Google it.  nyse is short for New York Stock Exchange, for those of you that can't figure it out.

The only reason gasoline isn't that "cheap" now is because the US GASOLINE/OIL COMPANIES want to make MORE RECORD PROFITS, by working their refineries at 100% capacity and not building new ones to handle the increase in vehicles on the road that's happened over the last few years.  Vehicles are lasting a lot longer now, are more fuel efficient, and gasoline companies want us to pay as much as they can get away with.  Congress won't do anything about it because most, if not all of them are in their back pockets.

I hear all the time about how gas was under $2 a gallon when Bush left office...BULLCHIT!  I have yet another source, energyalmanac*ca*gov that states that the US average for gas on 6/19/2006 was $2.999 a gallon...so all you BUSH lovers, eat it!  And do a bit more research other than just FAUX News....
Jun 22, 2012 11:12AM
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It has to drop below $4/gal first. Gas remains over that in Chicago. Stick it to the consumer.

Make record profits for another quarter. Oil need to be removed from the private sector. They have way too much control - and they could care less how much the consumer pays. Any increase the oil companies just pass it on to the comsumer so they can maintain their 10% and higher profit margin.

Oil dropped more than $3 yesterday and today gas is higher at the pump. What a crock.

Jun 21, 2012 9:07PM
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Right now gas should actually be in the 2.60 range but locally (Oklahoma) we keep getting these little price bump ups as the barrel price drops. Really makes me suspicious. I think supply and demand is no longer being used to set pump prices.
Jun 22, 2012 7:28AM
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Hang the petroleum speculators and pricing will stabilize.
Jun 22, 2012 1:32PM
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"May dip below 3.00"  This raises my blood pressure, with the price of crude plummeting the dang price should be below $2.00 at the HIGHEST!  If we received some relief at the pump it would allow us to spend money in other areas and that will stimulate the economy!
Jun 22, 2012 1:17AM
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About time! To perfectly honest...there really is no reason for gas to be above the $2.00 mark. Anything above that reflects too much profit or too much tax.

As for the "experts"...if they were truly experts...they wouldn't be talking about oil and it's business prices and availabilities...they'd actually be IN the oil business!

Jun 22, 2012 3:02AM
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Under $3 a gallon is not cheap, get it under $1.75 and it wouldn't be too bad. Those who use to blame Bush and Cheney and their oil buddies. Whose fault is it now? They had about as much control as obama.
Jun 22, 2012 9:07AM
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WTF, in kansas city area, $3.13, 3 or 4 weeks ago @  a crude price per brrl. of $105.00, to almost $3.50 or more in the last few day's with crude brrl. price down to under $80.00 ???  YOU TALK ABOUT RACKETEERING !!!
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