GAS PRICES: Under $3 per gallon coming soon? - KMSP-TV

GAS PRICES: Under $3 per gallon coming soon?

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We recently set a record in the United States: The average price of gasoline was $3 or more per gallon for 1,000 consecutive days.

Well, after three years, we may finally see a 2 at the beginning of gas prices in the next couple months. The average price for a gallon of gasoline in the U.S. fell 6.4 cents in the last two weeks. And it's fallen from $3.65 to $3.36 in that same time period here in Minnesota.

Now, gas always comes down after the summer months, due to a different blend of gas and less travel/less demand. But, the interesting thing here is that many experts believed we hit a new norm with gas prices this year and we'd never see below $3 gas ever again.

The good news is upper-$2 gas could be here soon. chief oil analyst Tom Kloza predicts the fall will see slow but steady attrition in retail gas numbers, thanks to record high U.S. refining rates and consumer demand that will at best match 2012 levels.

"Supplies are adequate, and indeed gasoline now typically sells for just a few dollars more than raw crude costs," Kloza said. "They'll go below $3.00 anytime soon."

Is there a day of the week that's better than others? What about a time of day? Also, why have we found this new norm of +$3 gas? What market forces are different today than they were 3-4 years ago when gas was in the low-to-mid $2 range?

Answers to these questions and more on FOX 9 News at 9

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