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Archive for Saturday, January 6, 2007

Oil prices slide

Analyst: Fuel prices should drop as well

January 6, 2007

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— U.S. drivers could start seeing lower prices at the pump as early as this weekend, thanks to the cascading price of crude oil and a seasonal dip in gasoline, analysts say.

A gallon of regular unleaded gasoline costs an average of $2.325 across the country, according to the AAA. In Lawrence, the average is $2.168.

"That's probably going to be the highest price you pay in January," Oil Price Information Service analyst Tom Kloza said. "We're going to get a nice little energy price dividend in January: If you're buying heating oil, you're going to pay a lot less than last year, and we're definitely going to be paying less for gasoline than we did in December."

Gasoline prices typically fall in January amid weaker demand, Kloza said, before perking back up around Valentine's Day and rising through the summer.

Also helping to temper gasoline prices is the recent slide in crude oil prices. Light, sweet crude for February delivery dropped as low as $54.90 Friday - the lowest price in 19 months - before climbing back to settle at $56.31, up 72 cents on the New York Mercantile Exchange.

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