ProsThere are several circumstances are behind the recent gasoline price declines. For one, September marks the end of the summer driving season, which reduces consumer demand for gasoline. Also, this is the end of seasonal federal requirements on gas that make the cost of importing and refining it cheaper.
Crude oil prices have been falling as well. The cost per barrel falling below $70 for the first time in a month has attributed to relief at the pump in a big way.
ConsAlthough crude prices appear to be falling, OPEC (Organization of Petroleum Exporting Countries) have set a floor at $60.00 a barrel. Even at the previous high of $78.00 a barrel, the $60.00 limit makes it hard for gasoline prices to fall much lower. This may even make Kloza's prediction of $2.00 a gallon out of reach as he went on to state that to achieve this, the cost of crude would need to fall at least $20.00 a barrel.
And the refineries aren't out of the woods yet. Hurricane season doesn't end until November and with storms brewing constantly in the Gulf of Mexico and the Atlantic Ocean, the threat of shortages always loom over the consumer's head.