johnnymk
09-13-2005, 06:14 AM
Gasoline prices could fall much faster than the federal government expects, a prominent national expert told the Charlotte Observer on Monday.
Pre-Hurricane Katrina prices in the $2.50s or $2.60s for a gallon of regular could reappear as early as next week, said Tom Kloza, chief oil analyst for the Oil Price Information Service.
The post-Katrina gas shortage sent averages in the Charlotte region to a record of $3.21 on Sept. 3 -- giving the area some of the nation's most expensive prices. Some stations were charging $3.50 or more when a crush of worried drivers nearly drained storage tanks in the first days after the Aug. 29 storm.
Charlotte's metro average price dipped to $3.03 over the weekend, according to data OPIS provides AAA. However, 41 of 42 stations surveyed in different sections of Charlotte on Monday were charging less than $3. Several had prices slightly under $2.90.
In a sign of the shortage's effects, Charlotte motorists are still paying more than the national average for gas. The national average fell to $2.97 over the weekend -- dipping below $3 for the first time in a week. Charlotte typically averages about 8 cent less than the national norm.
Kloza's forecast comes as the gas futures wholesale market, which affects current prices, has fallen more than 50 percent since a record high on Aug. 31. That was the third day after the Category 4 hurricane knocked out power to major Gulf of Mexico pipelines, and damaged refineries and drilling platforms.
Futures prices have dipped on an expected drop in gas demand with the end of the summer driving season -- and recent high prices, Kloza said.
The U.S. Department of Energy said last week pre-storm prices would not return until early November, but those estimates were developed soon after the Katrina price spike.
Pre-Hurricane Katrina prices in the $2.50s or $2.60s for a gallon of regular could reappear as early as next week, said Tom Kloza, chief oil analyst for the Oil Price Information Service.
The post-Katrina gas shortage sent averages in the Charlotte region to a record of $3.21 on Sept. 3 -- giving the area some of the nation's most expensive prices. Some stations were charging $3.50 or more when a crush of worried drivers nearly drained storage tanks in the first days after the Aug. 29 storm.
Charlotte's metro average price dipped to $3.03 over the weekend, according to data OPIS provides AAA. However, 41 of 42 stations surveyed in different sections of Charlotte on Monday were charging less than $3. Several had prices slightly under $2.90.
In a sign of the shortage's effects, Charlotte motorists are still paying more than the national average for gas. The national average fell to $2.97 over the weekend -- dipping below $3 for the first time in a week. Charlotte typically averages about 8 cent less than the national norm.
Kloza's forecast comes as the gas futures wholesale market, which affects current prices, has fallen more than 50 percent since a record high on Aug. 31. That was the third day after the Category 4 hurricane knocked out power to major Gulf of Mexico pipelines, and damaged refineries and drilling platforms.
Futures prices have dipped on an expected drop in gas demand with the end of the summer driving season -- and recent high prices, Kloza said.
The U.S. Department of Energy said last week pre-storm prices would not return until early November, but those estimates were developed soon after the Katrina price spike.