From the Columbus Dispatch (with sarcasm added by me):
Gasoline prices fell below $2 per gallon late yesterday in central Ohio, bringing back prices that in some cases are less than half of the highs seen during the summer.
Happy, happy, joy, joy...
Analysts, though, expect prices to hit bottom sometime soon.
Bummer.
"It means a lot of joy for a lot of people," said Roger Dreyer, president of the Ohio Petroleum Marketers and Convenience Association.
See, happy, happy, joy, joy. Dancing in the streets. Babies stopped crying...
The Speedway station at 911 High St. in Worthington was selling regular unleaded for $1.99 a gallon, one of several local stations to drop below the $2 barrier.
Those lows are way ahead of the average price, which was $2.34 per gallon yesterday, according to AAA. Yesterday marked the first time since January 2007 that gas prices in central Ohio dipped below $2 a gallon.
Ironically, yesterday was the first time since January 2007 that I got some real work done. Coincidence? I think not.
Did anyone notice the absence of a post from me yesterday? I thought not.
But don't get used to $2 gasoline, said Darin Newsom, a senior analyst for research firm DTN. "I would anticipate that the lows could come in soon," he said.
That's the same thing the local meteorologist said last night. I'm guessing gas price forecasters are about as accurate as weather forecasters.
A little more than a month ago, prices hovered near $4 per gallon following supply disruptions from Hurricane Ike. From there, prices plummeted, falling below $3 per gallon earlier this month and then continuing downward.
Based on extensive statistical and econometric experience, I declare a trend. Short term projections are that gas prices will become negative by Thanksgiving.
The fall in gasoline prices follows a rapid drop in crude-oil prices, as slowing economies around the world have caused a drop in demand. Oil closed at $67.50 a barrel yesterday, down from a high of $147 in July.
See, I'm not sure why they call it a Depression when it brings so much joy.
Newsom thinks gas prices will level out before the national average gets anywhere near $2 per gallon. Yesterday, the national average was $2.59 and the Ohio average was $2.34, according to AAA.
He's wrong. Trends don't lie.
But Newsom said the tumult in the financial markets is making it difficult to know where prices are heading.
"Forecasting has been tossed out the window at this point. It's a situation where we sit back and see what happens."
Now forecasts are inaccurate? What were they before?
Chad Rasul, co-owner of M&S Carryout on the West Side, agrees that prices may be near the bottom. His station is selling regular unleaded for $2.15 per gallon.
"We have a feeling it's going to go up tomorrow," he said.
...or down.
Even if prices stay low this week, he expects them to go back up in early November. His explanation has more to do with John McCain and Barack Obama than crude oil.
"It's totally because of the election that it dropped like crazy," he said.
Like, totally.
He has no evidence to support his claim, just the experience of watching prices over the years.
Oh, so he's a blogger?
