Gas under $1 a gallon??
 

Isn't amazing how things can change in a few months? You all remember what happened in July this summer when crude oil prices reached a record-breaking $147 a barrel pushing average prices at the U.S. pumps over $4.10 a gallon. Well, now Merrill Lynch Commodity Strategist Francisco Blanch and an Gulf Oil CEO Joe Petrowski are both predicting that crude oil prices may very well fall below $25 a barrel by early next year resulting to an unthinkable drop in gas prices to below a $1 a gallon!



"A temporary drop below $25 a barrel is possible if the global recession extends to China and significant non-OPEC cuts are required," Blanch said. "In the short-run, global oil demand growth will likely take a further beating as banks continue to cut credit to consumers and corporations."


Speaking at a South Shore Chamber of Commerce on Wednesday, Joe Petrowski, CEO of Massachusetts-based Gulf Oil said that that the price of oil could sink to as low as $20 per barrel which could lead to gasoline prices dropping under $1 per gallon by early next year.


On Friday, crude oil prices fell to $43.64 a barrel with gas prices in the U.S. currently at $1,77 a gallon compared to $2.37 a month ago and $3.03 a year ago, according to AAA.

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:drool: I can take DA Hemi out and not use all of the income!

I actually paid $5 dollars per gallon at one point.

V8 fans rejoice.

I think they will go back up again if our economy heads back in the right direction...

of course - there's only so much gas in the world - the only way the price of gas is going to fall is if there's low demand. Nobody wants gas, then they can't charge you $5, but if everyone wants it, you're going to have to pay. Either way it's not as good as it sounds. Sure you can get $1.00 gas, but the economy is going to be so bad nobody's going to be able to afford a car to put the gas in...and if the economy goes up and you can afford a car, gas will be $5 and you won't be able to afford the gas!

Either way - I hope I have the opportunity to fill up my camaro for $15...I'd love to go on a nice road trip! :popcorn:

I paid 1.57 for gas today. I honestly cannot remember the last time I paid that. It's incredible what a difference a few months can make on the economy. I still see tons of cars on the road every day. I just don't see where the reduction in demand is coming from. Surely there are not that many hybrids on the road already?

You'd be surprised. When I was at the local meijers for groceries, I was parked between an Escape Hybrid and a FIRST GEN INSIGHT!? Yeah, that's right. Someone still has a first gen Insight around here. Also had Western stickers so I'm guessing it's some college prof that thought he was 'ahead of the curve' but really must have just gotten his tenure. -_-

Yeah, I'll be serious and say that I've seen quite a few hybrids and Aveos on the roads more lately..

I still pay upwards of 1.65/gal. ;_;

Lower demand doesn't have much to do with hybrids, although they def. slow demand. I've noticed that in bigger cities people are getting more hybrids. However! the biggest reduction is b/c of the poor economy. People are shopping less, travelling less, less vacations, car pooling...I know a lot of my friends ride their bike to work or take the bus now. Also, trucks and SUVs don't sell anymore - more people are getting smaller cars.

People driving a lot less in smaller cars that get great gas mileage = a HUGE difference!

It goes way beyond petroleum demand for automobiles. Depressed global economy means reduced demand for goods of all types, that in turn causes a reduction in manufacturing, which reduces energy demand. Fewer trucks on the road, fewer goods moved by ship and rail. It all means a reduction in demand for oil/energy. Oil prices fall, gasoline prices fall.

Bob

Believe it when i see it.

funny to remember when .88/gal was high!

It's gonna go back up again like it always does. horde it while you can, maybe you can store enough up during the winter months

I just filled (8) 5-gallon containers that i had sitting in my garage at $1.42 a gallon. Put stabil in them and hope they will last a few months :)