DENVER (AP) — 
The national average for a gallon of unleaded regular was $2.681 on Friday, according to AAA, Wright Express and Oil Price Information Service. That’s 6.6 cents lower than a month ago and 8.5 cents higher than a year ago.
The national average has stayed below $3 a gallon for nearly two years, and most analysts think it won’t return to that level anytime soon.
“We’ve got gasoline supplies moving higher rather than lower so until we get unemployment down, you’re just not going to see much of an increase in gasoline demand,” said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates.
The government said Friday the jobless rate rose in August to 9.6 percent from 9.5 percent in July. High unemployment means fewer commuters on the road. Combined with a glut of supply and the end of the summer driving season, it also means retail gas prices likely will continue to slip.
The last time the retail gas price was at or above $3 a gallon for most U.S. drivers was in October of 2008 after a busy summer season when prices topped $4 a gallon.
When the economy showed signs of recovering from the recession this year, experts predicted pump prices would top $3 by Memorial Day. But the price peaked at $2.92 a gallon in early May as fears about the pace of the economic recovery intensified and consumers conserved cash.
Figuring out what causes pump prices to move is a little like trying to solve a Rubik’s cube puzzle. They are closely linked to crude oil, supplies, demand, where you live and the time of year.
Drivers on the West Coast, and in Alaska and Hawaii see higher pump prices than the rest of the country because of delivery costs, taxes and local pollution regulations. Motorists in Gulf Coast states tend to pay less because they live closer to refineries.
The highest prices for most drivers usually occur between Memorial Day and Labor Day, when demand picks up as vacationers join commuters and commercial drivers on the roads.
Summer gasoline blends, intended to reduce smog, can tack 10 to 15 cents a gallon onto the price, PFGBest analyst Phil Flynn said. When the switch to winter gasoline specifications occurs, it tends to lower prices.
Gasoline demand increased this summer but didn’t return to pre-recession levels as many Americans stayed closer to home and took shorter trips. Pump prices ranged between $2.70 a gallon and $2.80 a gallon while crude prices were between $70 a barrel and $83 a barrel.
Meanwhile, oil inventories hit the highest combined levels in 27 years, according to Cameron Hanover energy consulting agency.
“If you look at the next five years, there’s no reason to believe that gasoline will ever be in short supply like it was prone to be from, let’s say, 2003 to 2007,” said Tom Kloza, publisher and chief oil analyst at Oil Price Information Service.
While an improving economy with more jobs would be good news, it also could mean higher prices. Most experts believe oil will have to range between $80 and $100 a barrel before motorists will see a $3-per-gallon national average.
Several analysts say that likely won’t occur until next spring, just ahead of the summer driving season, barring a hurricane that interferes with Gulf of Mexico production.
“You really need to see a turnaround in housing prices and a turnaround in jobs to justify higher, sustained (oil) prices above $80 right now,” oil trader Stephen Schork said.
In the energy markets Friday, crude prices retreated after an early jump when the unemployment report was issued. Ritterbusch attributed the reversal to the ongoing concerns about a glut of supply and sluggish demand.
Benchmark crude for October delivery fell $1.44 to $73.58 a barrel on the New York Mercantile Exchange.
In other October contracts, heating oil fell 3.01 cents to $2.0322 a gallon, gasoline slipped 3.23 cents to $1.8893 a gallon and natural gas added 8.5 cents to $3.836 per 1,000 cubic feet.
In London, Brent crude fell $1.31 to $75.92 on the ICE Futures exchange.
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Comments (45)
jessieH
Posted on September 4, 2010 at 10:07amThe oil companies have no choice but to drop prices. When a man has no money for food, who can afford gas? Let’s all thank the Democrats, properly, this November.
Report Post »mplsmike
Posted on September 4, 2010 at 9:41amGas popped up about .15 a gallon here in mpls. As a guy who works in a heavy truck dealership, the $4.00 diesel didn’t have an immediate effect on the traffic we see, but as time goes on a lot of the less well funded indies have gone down. The reality as I see it, is that until we retake the country the real impediment will continue to be the EPA. You are only going to be able to make an internal combustion engine so clean before the cost of the equipment to do so becomes prohibitive. The mandated changes will continue to drive companies out of the business until a sane hand takes over that agency.
Report Post »California has done their level best to kill the trucking industry in that state, and when people get tired of the incessant demands that the CARB makes, there will be no one left to move freight in and out of that state.
crazyk
Posted on September 4, 2010 at 2:28amI love these averages. Here in Washington State gas is $3.06 and has been above $3 all year….Love to see it below $3 but I don’t believe it will happen. Our wonderful Governor will just raise our gas tax some more!
Report Post »LibertyGirl71
Posted on September 4, 2010 at 1:47amWe’re going to crash, folks. But we are *not* going to burn. We’ll buckle down and survive. It is my firm belief that during the time of trial we are approaching in our economy, things are going to be exposed. Everywhere. It won’t just be people like us, who are tuned in, who will be doing the exposing. Glenn is absolutely right…these people are going to destroy themselves. Their arrogance is going to bring them down. The bigger they are, and the higher they hold themselves on those pedestals, the harder and further they fall. Just watch them tumble. And watch our country rise again.
Report Post »RandomOne
Posted on September 4, 2010 at 1:56amThanks Liberty I needed that.
Report Post »RandomOne
Posted on September 4, 2010 at 1:30amDeflation is an event that happen when the economy contracts. People stop buying things for a variety of reasons, but the effect is that there is a surplus and vendors want to clear there inventory. This is why gas prices are going down. One would think that during a recession or depression that prices would get really low if deflation was the only economic factor at work. China has stopped buying our bonds, so we are now monetizing our debt witch will cause massive inflation. So, inflation is also hard at work devaluing the dollar, due to massive printing that our government is doing to cover the national debt interest (We are not paying the debt down just paying some of the interest). The devaluing of the dollar is why the stock-market looks to be going up. Don’t be fooled, we are on a downward slope. Those that move to the stock-market now will be destroyed.
Inflation and Deflation are not balanced! Deflation is creating a false sense of security while inflation continues to march forward. Ask your self why would the stock-market be getting better when unemployment is going up. It doesn’t make sense. The Federal Reserve is using its purse strings to hold off inflation as long as it can to restart the economy. The economy has been bent to the breaking point. When the Fed is forced to raise the interest rate to stop hyper inflation all bets are off as to what will happen next. One thing is for sure: China has 60 Billion dollars that thy are waiting to dump back on to the market and when they do other country’s will do the same to avoid having worthless currency in there reserves. This will most likely send the US economy in to a death spiral. All your US currency will be worthless. Think $500 for a loaf of bread or $800 for a gallon of gas.
I’m not a doomsday-er, but I am a mathematician and the numbers don’t lie. Our economic indicators are worse than Zimbabwe. The only thing supporting us is that we are the dafacto world currency, but that is about to change. The best thing that we have going for us is that china wants there bonds paid before they destroy our economy. I’m teaching my kid Mandarin.
Report Post »Huckabee Gingrich 12
Posted on September 4, 2010 at 2:37amSo if a loaf of bread costs $500 bucks, that means I’ll have to make about $4000 per hour to afford it, assuming all other goods and services inflate accordingly. Since my mortgage is a fixed installment for the next 26 years, I could pay it for three months on an hour’s earnings, with money to spare. I’m not buying your analysis. Where am I going wrong?
Report Post »truckinwife
Posted on September 4, 2010 at 1:11amAs much as gas prices have people in an up roar, the quiet but more impacting price is that of diesel fuel. As it is diesel that gets the products to the stores via semi trucks. And the fact that it takes less refinement to make diesel there is no excuse for this.
Report Post »If you want lower prices in the stores there needs to be relief for the American truck driver when he fuels up. As that effects prices acrossed the board including gas, as the tanker trucks get it to the gas stations.
alshere
Posted on September 4, 2010 at 1:07amUpstate NY is in no way going down and what about deisel? That has been flat at 3.12 agallon here.
Report Post »truckinwife
Posted on September 4, 2010 at 1:12amDiesel good question as that affects more then just diesel ran four wheelers. But it also impacts the BIG guys aka 18 wheels which in turn bring the products to market.
Report Post »LibertyGirl71
Posted on September 4, 2010 at 12:53amI live in central VA and our prices have steadily been going down. We’re at about $2.35 per gallon.
Report Post »cali_chick1978
Posted on September 3, 2010 at 11:32pmGone are the days of 1.99 a gallon.
Report Post »icemann1
Posted on September 3, 2010 at 11:15pmGas prices in Idaho are always high and no one explains why that is so. Hard to drive around looking for work when you have to watch every penny and right now it is taking 299 of them to buy a gallon of unleaded.
Report Post »Typical Bitter Clinger
Posted on September 3, 2010 at 9:42pm…gas prices sure aint goin’ down around THIS neighborhood in Ohio…
Report Post »gerrygrass
Posted on September 3, 2010 at 7:39pmWait until the aftermath of the elections. Right now, the prices are low because it‘s politically correct in this president’s eyes. He has to keep the people somewhat at bay. I fully believe he knows what he is doing and why he is doing them. Keeping the gas prices low is only a means to justify the end.
Report Post »Huckabee Gingrich 12
Posted on September 4, 2010 at 2:20amYou nailed it.
Report Post »Gas was dropping like a rock this time two years ago.
It got all the way down to $1.49 right after the election, stagnated there for about 6 weeks, then two days before the Immaculation, it started going back up, and has, since, almost doubled.
rocktruth
Posted on September 3, 2010 at 7:33pmI remember in sometime in 2001 I bought gas for .99 cent a gallon in Mission Viejo California. Then the middle east had an idea to increase their stocks.
Report Post »Hondaman
Posted on September 3, 2010 at 7:17pmNow that summer vacations are over, what a coincidence that gas prices are going down.
Report Post »NYbigmouth
Posted on September 3, 2010 at 7:16pmWake Up!! Baker City, OR pays $3.06 today down 3cents. We haven’t been below $3 for 2 years!
Report Post »Jsor2112
Posted on September 3, 2010 at 7:11pmI live in FL and it wasn’t long ago when $1.71 was ridiculously high (about 7 years). It may be a bad sign for the economy that prices are falling but this $2.75 crap sucks and has got to go. I’m glad it’s going down. Maybe if it goes low enough people will drive more and spend more money in the stores. If it cost less to transport goods then prices should drop because that was the reason why everything went up in the 1st place and that means my money buys a little more.
Report Post »Steven Smith
Posted on September 3, 2010 at 7:11pmI have now done so much with so little for so long that I am fully equipped to ANYTHING with NOTHING. 1992 Fleetwood Brougham for hire with heavily armed (but crippled) chaufer.
Report Post »Steven Smith
Posted on September 3, 2010 at 7:05pmI’ve never been to Colorado, but I have lived in Ohio for more than 20 years, and in just the last week alone the price for regular unleaded has gone up 31 cents per gallon. And where are all the jobs at ? I took a job making 20 percent less per hour, just so I could have the comfort of actually working full time. No plans for fun here, but it‘s not as bad as my kids’ mom. She just quits her job when the Child Support Enforcement Agency catches up with her. Maybe I should work for the Government, better benefits thanks to all of us.
Report Post »NYbigmouth
Posted on September 3, 2010 at 7:04pmObviously, they have NEVER checked Oregon gas prices. It’s $3.06 today down from $3.14 last month. That’s in Baker County-where the employment is the 2nd lowest in the state and the state isn’t high enough on the employment ladder to be able to see daylight for another century!
Report Post »RayGone
Posted on September 3, 2010 at 7:04pmAHHH…
I miss those Good old days of W… It was great to have those $4/ Gallon gas…
We elect some Black dude .. See what is happening…
and DOW up again… Up 50% since Odumbo took over… I hate it
Mr.Beck .. Pls help !!!
Report Post »fightinggranny
Posted on September 3, 2010 at 7:56pmTroll. I’m already sick of seeing the non-truth statements from you. Go back to the Huff Po where
Report Post »you belong. Believe me, the Conservatives never go there.
iatoala
Posted on September 3, 2010 at 7:57pmDate Open High Low Close Vol Adj
Jan 2, 2009 8,772.25 9,080.57 8,725.10 9,034.69 4,048,270,000 9,034.69
Jan 20, 2009 8,279.63 8,309.02 7,920.66 7,949.09 6,375,230,000 7,949.09
Sep 2, 2010 10,270.08 10,350.98 10,211.80 10,320.10 3,704,210,000 10,320.10
This is the facts something libs don’t like Go ahead Raygone play the fool. The reason the Dow is up a large percentage is because it adjusted and fell 1100 points getting ready for the disaster. Your just a lying fool go somewhere where facts don’t matter. CNBC is hiring! Up 50% HA! You are obviously broke cause you wouldn’t be lauding the market if you had any money in it.
Report Post »JJ Coolay
Posted on September 4, 2010 at 10:34amObama took over on Jan 2009. At that time the Dow was around 8200. It’s now at 10,500. That’s less than 25%. An increase, yes, but certainly not 50%.
Report Post »And do you think 10 million unemployed Americans really care what the Dow is at or do you think they’d rather be putting bread on the table and paying their heating bills this winter?
JJ Coolay
Posted on September 4, 2010 at 10:38amMy bad… less than 30%.
Report Post »JJ Coolay
Posted on September 4, 2010 at 10:51am230,000 jobs lost during the “summer of recovery”
Unemployment is up again.
Yeah.. the Dow being up means a heck of a lot to anyone NOT on wall street.
Report Post »rocktruth
Posted on September 3, 2010 at 6:57pmOh yes, e-commerce is also responsible for the unstable commercial realistic market. Welcome to the new efficiency. Being efficient is a real job killer. No one wants to blame their iphones & ipads for ecommonic collapse but HELLO? Anyone home? Do the math and do it again. Media doesn’t cover this. In my industry, Job’s are on the rise, but many of them are being outsource to India and the Philippines.
Report Post »rocktruth
Posted on September 3, 2010 at 6:46pmOne word. ECOMMERCE!
Report Post »MURMAN
Posted on September 3, 2010 at 6:38pmGas has just increased here in NW Michigan by 13 cent (in one day) but gas is always expensive here.
Report Post »MURMAN
Posted on September 3, 2010 at 6:33pmGas just INCREASED here in NW Michigan by 13 cents (in one day) but we always have high gas prices.
Report Post »JJ Coolay
Posted on September 4, 2010 at 10:21amDon’t you just love how it jumps 13 cents in a day and yet it takes about 2 weeks for it to drop the same 13 cents? It rarely drops more than 1 or 2 cents in a day but I’ve seen on numerous occasions it spiking 8 or 10 cents in a single increase.
Report Post »bhelmet
Posted on September 4, 2010 at 11:13amMr Coolay, you just got an economics lesson – that phenomenon is known as elasticity and gasoline is highly inelastic. No matter what the price, we need to buy it therefore its price may rise quickly, but it will drop slowly.
Report Post »LIVEFROMWV
Posted on September 3, 2010 at 6:02pmI work in retail and have noticed customers shop us less in a week than last year….but they are buying more. They are trading down to less expensive items.
Report Post »Many of my friends have traded to more fuel efficent cars and we are looking also.
We plan more if we are traveling.
We seldom…just drive around.
I know we aren‘t the only one’s who have changed their habits to be less wasteful.