Gas Drops Below $3 Nationwide

Prices At Pump Approach Year-Ago Levels Even As Likely OPEC Cuts Push Oil Prices Higher

(CBS/AP)  The global economic crisis has driven oil prices down 50 percent since July, from a high of $147 a barrel to $74 today. That price decline set off a similar slide at the pump, reports CBS News correspondent Nancy Cordes.

The national average for a gallon of regular gas has plunged 86 cents in just one month.

In fact, gas is now below three dollars a gallon in 35 states. In eight of those states it's under $2.75 - like Missouri, where it's $2.57.

Prices dropped further below $3 a gallon on Monday and approached year-ago levels even as the near-certainty of an OPEC production cut pushed oil prices marginally higher.

Gasoline has fallen more than a dime a gallon since Friday, hitting a national average of $2.92 on Monday, according to auto club AAA, the Oil Price Information Service and Wright Express.

Pump prices have fallen 29 percent from their July record high of $4.114 a gallon and are only 10 cents higher than a year ago. That difference could be bridged this week if gasoline keeps falling at the current rate.

Energy industry analyst Peter Beutel told CBS Radio News that the price has dropped because the consumer has changed their driving habits.

"We're seeing gasoline demand down against a year ago. It’s the first time that's happened since 1983," Beutel said.

The pullback at the pump comes amid a dramatic turnaround in crude oil prices.

Chakib Khelil, president of the Organization of Petroleum Exporting Countries, said Sunday that members plan to announce a "substantial" output cut at an extraordinary meeting that begins Friday in Vienna.

Analysts say OPEC countries have been alarmed by falling oil prices and want a production cut to prop up members' national budgets that only months ago were bulging with hundreds of billions in petrodollars.

Khelil, who is also Algeria's energy minister, said OPEC may cut output again at a meeting in December, and that the group considers the oil market oversupplied by about 2 million barrels a day.

Light, sweet crude for November delivery rose $2.29 to $74.14 a barrel in morning trading on the New York Mercantile Exchange. The contract Friday gained $1.53 to settle at $71.38; crude has fallen about 50 percent from its July 11 high of $147.27.

Venezuelan President Hugo Chavez said Sunday he would like prices between $80 and $90 a barrel.

On Monday, trader and analyst Stephen Schork called those comments "oddly conciliatory."

"Unfortunately for Venezuela ... and the rest of OPEC, $80 might not be enough for the bears ... at least in the short run," Schork said in his daily publication, The Schork Report. "After all, the people ... who (initially) denied the existence of the bubble and who have subsequently been telling us since $110 that the floor in oil is in ... are the same people who are now telling us oil cannot last below $80."

Americans radically changed their behavior after gasoline prices spiked above $4 over the summer. And there are signs that emerging economies like China have begun to slow.

Analysts say almost any OPEC action has already been priced in by investors.

"The market is factoring in a big cut. It will likely be as much as 2 million barrels," said Mark Pervan, senior commodity strategist with ANZ Bank in Melbourne. "I think they will go pretty large just to change the sentiment."

Investors largely ignored an OPEC output reduction of about 520,000 barrels a day last month, focusing instead on weakening demand.

Vienna's JBC Energy suggested that - beyond an OPEC cut of at least 1 million barrels a day - a surprise in the form of Russia also reducing output in coordination with the Organization of the Petroleum Exporting Countries - may be in the offing.

"The likelihood of such a move should not be underestimated, as Moscow has recently been seen putting more emphasis on its relationship with OPEC, having sent Vice Premier (Igor) Sechin to attend the last meeting in September," it said in a research note.

In Paris, Nobuo Tanaka, the head of the International Energy Agency, urged OPEC not to cut production so as not to stifle the still-growing economies of countries like China, India and Brazil.

"We think that the current level of prices are still very, very high and the market very tight," he said.

In its monthly report last week, the Paris-based energy watchdog cut its forecast for oil demand this year by 240,000 barrels per day, and slashed its 2009 forecast by 440,000 barrels per day amid the global financial crisis.

Fears that turmoil in global financial markets will spark an economic slowdown in developed countries has helped push prices down.

Last week, news of rising U.S. oil inventories, falling retail sales and slowing housing starts fueled concerns that the world's largest economy may face a major recession that will undermine demand for crude.

"Oil demand in the U.S. will be a bellwether," Pervan said. "If the US, Europe and Japan go into a major recession, there's no reason we can't see $35, $40 a barrel."

In other Nymex trading, heating oil futures rose 6.08 cents to $2.2177 a gallon, while gasoline prices gained 3.29 cents to $1.699 a gallon. Natural gas for December delivery surged nearly 20.7 cents to $7.513 per 1,000 cubic feet.

In London, December Brent crude was up $1.97 to $71.57 a barrel on the ICE Futures exchange.

[whatiknow2]

It makes me with I had a large tank in my back yard so I could store gas now for when it goes above $5 next summer.

[rudy654-2009]

Gee, an election and gas prices go down. Like that never happens. Yeah right.

[Torilin]

Under our great Bush leadership we finally have sub-$3 gas again. Time for the Big 3''s SUV''s to make a come back!!

[denn034]

Not in Utah that has the third highest gas costs in the nation though.

Paying 2.24 in Enid, Oklahoma.

[tannerbird]

This is a joke they just want to get everones mind of oil like they have in the past. and buy the way does anyone know who owns all the land where the shale is. lets go after it it would make a lot of good jobs now is the time we need the jobs.

[yongamerica]

BIG DEAL.
Seeing where the price of a barrel of oil was just four years ago, the price of gas should still be under $2.00 a gallon.

[petro49l]

The price for gasoline reduced for the Presidential Election. After it, the Saudis will decrease output from the Persian Gulf to drive the price for a barrel of oil. What about repairs on the oil industry caused by hurricanes? Hurricanes like Katrina, Gustav, Ike, and future storms are risks to the industry. The Department of Homeland Security must not indulge politicians like Mike Brown. Pennsylvania''s EMA Director Adrian King was also terminated in 2005 for refusing to help New Orleans. The Federal and State Governments need motivated professionals to ensure a recovery effort to vital industrial plants. O.P.E.C. should realize that America is ready for a disaster.

[aztecdakota]

Well the bottom started falling out of gasoline prices around the middle of the month. All the SS retirees and pension people, bought their best on gas, the first week of the month, at the near 4 buck a gallon price. So us retired people don''t have any money to buy this really great deal on gasoline, only those with some decent bucks can take advantage of this. NOW WATCH WHAT HAPPENS!!!! By the first week of November, (this is when us retirees get are checks and are "desparate" for gas) look at what the gas prices will be. I honest to God, hope I am wrong, and will love to be chastised. BUT, watch what us American retirees have to pay, for gas, from the 1st to the 10th of November. I sure hope us elders can get gas for $2.75 a gallon, in early November. I always fill up my wifes 11 year old car, but but for months I have been 1/2 tanking my 14 year old car. Sure would like to see how it feels again to tank them both up!!!!! Lets see what happens.

[latrocinor-2009]

Under our great Bush leadership we finally have sub-$3 gas again. Time for the Big 3''''s SUV''''s to make a come back!!
Posted by peanutcrisp

President Bush has nothing to do with gas prices. Obviously you failed to finish grade school.

[joehawkinson]

The reason why the price of oil has been declining for a while is -if you watch carefully- the fact that those evil investment banks that went bankrupt were in fact artificially driving the oil prices up by speculating the oil futures. They went down and with no speculation oil prices are stabilizing. There is no other variable change in this scenario. Supply demand have been more or less the same for a while except for the absence of those evil speculators.

[easeup-2009]

Just logged on--any moonbats saying they are lowering the price for the election?

[omega40]

The reason why the price of oil has been declining for a while is -if you watch carefully- the fact that those evil investment banks that went bankrupt were in fact artificially driving the oil prices up by speculating the oil futures. They went down and with no speculation oil prices are stabilizing. There is no other variable change in this scenario. Supply demand have been more or less the same for a while except for the absence of those evil speculators.

Posted by joehawkinson


You are mostly correct. I would argue the initial drop was caused by reduced demand from economic slow down. The oil speculators then panicked and pulled their money out of the speculative markets. It doesn''t appear to be a coincidence that the financial houses started falling as soon as the price of oil took its first loss.

[walt1944-2009]

The price of gasoline may have dropped a lot, but the price of everything else hasn''t!!!!

We were told that the price of groceries and other goods jumped up because the price of fuel went up. Now with the price of fuel gone down, you would expect the price of groceries and everything else to drop too.

WRONG!!!!

Now we are being told the BS that prices of groceries and other stuff are STAYING HIGH, because suppliers are afraid of getting caught up in another oil price spiral.

How about the truth for once. Suppliers are keeping prices high because they are GREEDY and like seeing a high profit margin on their financials. So what if the consumer doesn''t like it; let them grow their own food. The suppliers will just sell it to China or India where all the jobs and money are!

Maybe we should start growing our own! We are marching BACKWARDS to a time when everyone was growing their own "victory gardens" in the back yard and people started "cottage industries" in their garages, barns, and homes, since jobs are evaporating here.

Thank you very much NAFTA, the Great Emperor Bush II and all neocon Fascist Nazi Republicans everywhere!!!!

SIG HEIL, "FREE TRADE" IS MY MIDDLE NAME!!!, BUSH!!!
sig heil, BUYING AMERICAN IS UN-AMERICAN!!!, McBush!!!
sig heil, I CAN SHOW PEOPLE HOW TO HUNT MOOSE!!!, Palin!!!

[latrocinor-2009]

Around $2.60 to $2.80 here in Colorado.

The oil companies got people so angry here they are probably going lose their tax breaks in this state on election day.

[easeup-2009]

I will bite,

The Saudi''''s lowered the fuel prices to help the

fascist bush crime family elect McBushCain!


Just in time for the election, Thank GAWD the surge is working.

Posted by pythoncharly at 03:00 PM : Oct 20, 2008

You black helicopter loons are hilarious! The Saudis can just turn the ''ole price dial, right? Reduced demand has nothing to do with it?

[donevis-2009]

Sure it''s dropped. Just the way it did before the last two elections. We have such short memories. It''ll be back up in time for the Holidays just as before. We''ll be hearing the same old lies just remixed and in a different order.

[latrocinor-2009]

The Saudi''s lowered the fuel prices to help the
fascist bush crime family elect McBushCain!
Just in time for the election, Thank GAWD the surge is working.

Posted by pythoncharly at 03:00 PM : Oct 20, 2008


Your ignorance is so sad.

[latrocinor-2009]

Posted by walt1944

Another BDS victim (Bush Derangement Syndrome) Ignorance is so sad

[latrocinor-2009]

Sure it''''s dropped. Just the way it did before the last two elections. We have such short memories. It''''ll be back up in time for the Holidays just as before. We''''ll be hearing the same old lies just remixed and in a different order.

Posted by donevis


The oil companies always come up with an election day present. I noticed that last election also.

[jjp735i]

It''s an election year, a major election year. Of course prices dropped. Bush & Friends asked the oil companies to lower the prices so it could help their party. At that is how it seems. Will they go right back up again after the election? I guess we will have to wait and see.

Has anyone noticed food and other suchs things are NOT dropping? Shipping has gone down, but prices are still high and are going higher.

[latrocinor-2009]

Kila_MaDDoGG, I are da HICK!

Kila_MaDDoGG want sum possum!!

I get my welfare check therefore I can afford to buy sum Possum!

Posted by Kila_MaDDoGG

[latrocinor-2009]

Kila_MaDDoGG, I are da HICK!

Kila_MaDDoGG want sum possum!!

I get my welfare check therefore I can afford to buy sum Possum!

I get my welfare check therefore I can afford to buy sum crack!

I father crack babies to get more welfare check!


Posted by Kila_MaDDoGG

[latrocinor-2009]

Kila_MaDDoGG
Posted by Kila_MaDDoGG

[kevboom]

Meanwhile in North Carolina, gas remains $3.25 to $3.50 while the attorney general sits idly by letting gas station owners gouge the public...

[latrocinor-2009]

Kila_MaDDoGG
Kila_MaDDoGG
Posted by Kila_MaDDoGG

[latrocinor-2009]

Kila_MaDDoGG
Posted by Kila_MaDDoGG

Beautiful example of an Obama supporter.

[newlector]

I am wondering why the prices haven''t drop as fast as used to increased when the price of the barrel of oil increased before. I remember the guys in the gas station running to change prices as soon as they saw in the news higher prices on the barrel of oil being announced in the news.
Now the barrel of oil is less than half than July 2008 and the prices are not half of the prices on July, nor the guys in the gas station are running to lower the prices on the gallon of gas.
Who is ruling the gas prices?, why we have to tolerate this injustice?, what can we do to control this unfair situation?
Why the media is not making a big noise about this important matter?

[latrocinor-2009]

Kila_MaDDoGG
Posted by Kila_MaDDoGG

Kila_MaDDoGG, the welfare crack head, took his crack baby''s money to buy a computer and spam the internet. This is a classic Obama supporter.

[latrocinor-2009]

Kila_MaDDoGG
Posted by Kila_MaDDoGG

Kila_MaDDoGG, your lights are on, is anyone home??

[easeup-2009]

Sure it''''s dropped. Just the way it did before the last two elections. We have such short memories. It''''ll be back up in time for the Holidays just as before. We''''ll be hearing the same old lies just remixed and in a different order.

Posted by donevis at 03:04 PM : Oct 20, 2008

It rose before the 2004 elections.

[slim1h2o]

Posted by Latrocinor at 03:17 PM : Oct 20, 2008

I don''t know why these people have not been kicked off here yet. With some of their garbage they have been spewing.....

[gop_will_win]

Anyone with half a brain will tell you we have cheap gas under Bush. Remember $10 a gallon under Clinton? I do! Lets all vote for McCain and gas will be even cheaper.

[easeup-2009]

Latrocinor,

It was nice chatting with! Have a good day! Gonna get in my Mercedes Benz and go distribute more vote Obama flyers. Cause I got da money and I got da time!

Posted by Kila_MaDDoGG at 03:20 PM : Oct 20, 2008

Translation: Mom''s going to be home soon & if I don''t do my homework I can''t watch TV tonight.

[latrocinor-2009]

Posted by Latrocinor at 03:17 PM : Oct 20, 2008

I don''''t know why these people have not been kicked off here yet. With some of their garbage they have been spewing.....

Posted by slim1h2o


When I want quality social or intellectual exercises the CBS forums do not immediately come to mind.

It''s just fun to be here and argue with real people. Kids like to argue with make believe video game characters.

I like to argue with ignorant abusive loony people for some strange reason I haven''t quite figured out.

[slim1h2o]

I like to argue with ignorant abusive loony people for some strange reason I haven''''t quite figured out.


--------------------------------------------------------------------------------

Posted by Latrocinor at 03:27 PM : Oct 20, 2008

LOL,,me too.

When it''s sane and sensible. With those,,it was neither.

They went from story to story posting non-sense,,

anyways, like easeup said,,,,it''s time to do their homework.

LOL

[slim1h2o]

Gas prices here in NC, are still above $3.00 per gallon....

[usmcvn1]

"We''re seeing gasoline demand down against a year ago. It%u2019s the first time that''s happened since 1983," Beutel said. "

1983....When the GREAT SATAN ronald reagan was running for reelection.

[rhs648]

Sure it''''''''s dropped. Just the way it did before the last two elections. We have such short memories. It''''''''ll be back up in time for the Holidays just as before. We''''''''ll be hearing the same old lies just remixed and in a different order.

Posted by donevis at 03:04 PM : Oct 20, 2008

It rose before the 2004 elections.

Posted by easeup

It sounds like you may believe that the government manipulsates the price of gas. If this were so, wouldn''t the government have manipulated the stock market and the housing market, too? If President Bush could manupulate these markets, he would have done so to have McCain elected. McCain may lose the election, in part, because so many Americans are frustrated and abgry about the economy. A good economy might make Obama less attractive to many voters.

[rhs648]

correction

Sure it''''''''''''''''s dropped. Just the way it did before the last two elections. We have such short memories. It''''''''''''''''ll be back up in time for the Holidays just as before. We''''''''''''''''ll be hearing the same old lies just remixed and in a different order.

Posted by donevis at 03:04 PM : Oct 20, 2008

It rose before the 2004 elections.

Posted by easeup

It sounds like you may believe that the government manipulates the price of gas. If this were so, wouldn''''t the government have manipulated the stock market and the housing market, too? If President Bush could manupulate these markets, he would have done so to have McCain elected. McCain may lose the election, in part, because so many Americans are frustrated and abgry about the economy. A good economy might make Obama less attractive to many voters.

[omega40]

A good economy might make Obama less attractive to many voters.

Posted by rhs648

LOL, oh absolutely. Didn''t America go out and vote against peace and prosperity in 2000 so that they could end up with what we have today?

[scottyusa]

Well its about time. I am no fan of OPEC who controls the flow of oil (supply) to ensure high prices. Well they are finally going to find out that they cannot control demand. I don''t feel sorry for them. I hope they are losing billions. I also hope we have learned this as well.

[easeup-2009]

It sounds like you may believe that the government manipulsates the price of gas. If this were so, wouldn''''t the government have manipulated the stock market and the housing market, too? If President Bush could manupulate these markets, he would have done so to have McCain elected. McCain may lose the election, in part, because so many Americans are frustrated and abgry about the economy. A good economy might make Obama less attractive to many voters.

Posted by rhs648 at 03:41 PM : Oct 20, 2008

The other poster believes that. My point was since it ROSE before the 2004 election, the government cannot manipulate price.

[latrocinor-2009]

They went from story to story posting non-sense,,

anyways, like easeup said,,,,it''''s time to do their homework.

LOL

Posted by slim1h2o

Really.

With all the great self study opportunities and need for good workers and technicians and other wonderful avenues of success I have always felt like a kid in a candy store in this incredibly wonderful land of ours.

When I read these posts from depressed sad people bashing successful people it makes me wonder what in the world happened to them so they choose to be failures?

Abuse, neglect, School bullying, some accident that hurt their learning ability? I am obviously blessed with a feeling of "yes I can".

How does one help another feel that "Yes I can" feeling? They think Obama will somehow magically make it happen but all he can spend lots of money to lead a horse to water.

What is going to magically make them quit blaming others for their failed lives and cause them to start to choose success? Success is a choice as is failure.

Blaming Bush and the GOP, or anyone else for that matter, is simply sour grapes.

[omega40]

The other poster believes that. My point was since it ROSE before the 2004 election, the government cannot manipulate price.

Posted by easeup

It can and does. Think strategic oil reserves.

[latrocinor-2009]

The government can affect gas prices through competing with the private sector for petroleum products or taxes, or regulation but to "manipulate" impies there is some kind of conspiracy.

The ONLY agenda I can believe, besides profit, is to make the voter have maybe a little warm fuzzy feeling the day he/she goes to the polls.

[omega40]

The dumbers voting against the dumbs, and the dumbers won.

Posted by ObamaUberAll

And the dumbest of all couldn''t read a simple butterfly ballot and voted for Buchanan.

[latrocinor-2009]

When the GREAT SATAN ronald reagan was running for reelection.

Posted by usmcvn1


Another hate poster.. OMG!! They''re everywhere they''re everywhere!! EEEK!!

[latrocinor-2009]

The dumbers voting against the dumbs, and the dumbers won.

Posted by ObamaUberAll

AND YET Another hate poster.. They''re everywhere they''re everywhere!! Help!! We need some anti-hater bug spray!!

[omega40]

RON PAUL.. FOR A CHANGE FOR THE BETTER!!!!

Posted by DoILookligaf

I''m all for ending the failed war on drugs and the Iraq occupation as well. Ron Paul is right on both issues.