AAA: Look For Fuel Prices To Keep Dropping
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ST. LOUIS (KMOX) – After flirting with $4 a gallon just a few months ago, gas prices at many stations throughout the St. Louis area dropped back down to $3.00 earlier this week.
“And it looks like it’s going to continue to moderate as we go forward,” said Mike Right, vice president of public affairs for AAA of Missouri. “In fact there are some stations in the St. Louis area you can already buy gas for under three dollars a gallon.”
So drivers are finally getting the break they were hoping for earlier this year when prices seemed to be threatening to reach historic highs set in 2008, but what’s behind this very welcome decline at the pumps?
“Well we’ve seen a significant reduction in the cost of crude oil,” Right replied. “At one time crude was selling for $110 a barrel. That same barrel of crude now is selling for less than $80. That’s the main driving force that’s impacting retail prices.”
And now for the big question on every driver’s mind — how long can this last?
“I think that at least for the immediate future things are looking good from a consumer’s point of view,” Right told KMOX News. “We have an abundance of crude oil in inventory, gasoline is in strong supply, and demand for both crude and gasoline is pretty flat. So when you have excess supplies and soft demand usually you see prices moderate.”