Pain easing at pump?

Published 12:05 am Thursday, June 21, 2012


For the first time since February, the national average for gas dropped below $3.50 per gallon.

In Andalusia, the average is down to $3.13 per gallon with it being as low as $3.08 per gallon at places like the Cannon Oil station.

That’s down 4 cents from last week, nearly 30 cents from last month and nearing the six-month mark in which the average was $3.09 per gallon. Gas is nearly 30 cents less than it was in June 2011.

“Crude oil prices are dropping, due in part, to economic issues in other parts of the word,” said AAA spokesman Clay Ingram. “Since crude oil is priced in dollars, the demand goes down when the value of the dollar goes up. So, current global economic situations are putting downward pressure on crude oil prices, which results in lower prices at the pump for all of us, finally.”

Ingram said that crude oil has been over-priced for all of 2012, but that things are finally setting down in the investment world, which also helps to push prices downward.

“We should see prices continue to decline in the coming week and could see bigger drops during the fall,” he said.

On Tuesday, the price of West Texas intermediate crude oil rose 79 cents to $84.06 per barrel in hopes that the Federal Reserve will announce new measures to stimulate the U.S. economy.

Brent crude, which helps set the price for oil imported into the U.S., added 4 cents to $96.09 in London.