Also in this playlist...
This transcript is automatically generated
A little extra cash in your pocket after -- filling up the tank.
If so you're not alone get this in just the past week the national average cost of regular gas.
Has on twelve cents to three dollars as 67 cents a gallon.
And get ready because it's a good chance it could drop even more in the next couple months and -- a lot.
It's what's behind all this let's fast -- -- -- veteran of the -- report for his take Stephen thanks for joining us.
That's great to be -- thank you are rates so what.
I guess I would first ask you why are gas prices falling by so much when boy really still around ninety dollars a barrel.
What a quick chance there is -- fact that they had risen by so much in the month at September.
We're now at a time of year where retailers across the country can -- late winter grade gasoline.
This is a cheaper gasoline to manufacture and therefore there was a price differential.
Between this summer grade and were to grade which is what we are now consuming.
By about twenty cents.
Now what happened back at the -- the September beginning of this month is that we had a number of refinery outages and number pipeline -- -- outages.
So we actually saw a shortage in gasoline so again in September prices -- that we begin to fall because we make this transition into the winter grade.
Now that fall in price was pushed down the road because of these refinery disruptions some fact we had about a twenty cent rise in price.
That we normally would not have seen at this time of the year so that price plus the normal transition to lower prices that we see every October November is now taking place so for the consumer listening to this is good news over the next few weeks we can expect to continue to see further price declines at the pump how much.
Right now we as you said we just came off but false sense that's the dollar 67 cents.
I given where are we war prior in where the refinery acquisition cost of crude roll out we could be looking out another twenty.
25 cents between all seven dogs out.
Between now and the beginning of the holidays we can expect to see probably another 20/20 five cents lower but just keep in mind.
That that what goes down always comes up and towards the holiday students become -- -- on the road didn't take holiday we had the malls we consume more gasoline.
Prices will begin to move up in normal historical fashion.
Around the holiday season just like they do.
Every year -- didn't even at 367 a gallon eat while we might be feeling the relief of a twelve cent drop these are still historically very high gas prices and folks -- commerce not solving the fact that gas prices head.
Nearly double that this.
Rates from when pres Obama took office this is likely to remain a big election issue and we heard it very heavily debated in the last -- presidential.
If there's any chance.
The CD momentum the Romney's picked up in the holes.
To the dropping gasoline since he's spoken so fiercely on his energy policy about drilling more.
And approving the Keystone Pipeline that you'll be very bearish for gasoline and oil prices.
Perhaps it would indeed the current administration in -- all intents and purposes.
He's no friend of the oil and gas industry have not -- on a limb and saying that.
And certainly their policy initiatives over the past two years have certainly then conducive to a raising prices.
I vis -- -- making it harder to supply the markets.
With gas claim that what we need so indeed the -- situation Romney campaign highs that I see -- this situation.
The administration's decision that the next -- Keystone Pipeline which really was a no brainer.
To bring very cheap oil from North Dakota and Canada down into the Gulf of Mexico -- of foreign market.
Really gives a big you know big fat target for the Romney campaign to -- to seize upon -- And it now and we just spoke to I guess about the Middle East conflict obviously that's been what's supporting oil prices.
Do you believe that -- conflicts in the Middle East will continue to support those oil prices around ninety dollars barrel.
What they certainly creepy template for these quick price shocks in oil so indeed it Syria.
Which is a surrogate of Iran if that does indeed Foster further trouble in Lebanon.
Lebanon is Israel's neighbor it's not hard to imagine what could transpire there.
And certainly that would create price shock for oil but can it last.
We have to keep in mind the oil markets or the oil bulls are junkies they need that -- life.
Oil price -- two weeks ago were surging higher because of the conflict between Turkey and Syria.
-- really haven't gotten any sort of new headlines that the in that manner.
So now prices are coming down so the bulls need their fix right now.
So what this is telling you is that the market cannot support oil higher oil price for a sustained amount of time.
-- the economy simply cannot sustain.
Our eight Stephen Starr at the shark apart we're gonna hold -- you're at viewers that it listening I'm forty and thirty cent dropping gasoline prices will be welcomed.
All right time now.
Filter by section