Posted in: Gas Prices,
by Patrick DeHaan on Oct 22, 2012 11:19 AM
The national average yesterday took its biggest weekly decline in over a year, according to GasBuddy data. The decrease of 10.1c/gal was the largest week-on-week decrease since late May 2011, when prices decreased 10.4c/gal in one week. Last week's drop was also one of the largest since the 2008 recession saw prices drop week after week nearly 30c/gal.
It's sure to come at a time that many motorists are highly skeptical of the reasons surrounding the decrease. Many I've talked to believe the drop solely has to do with politics, or that a certain politician is lowering prices. But since we believe in educating our users and debunking myths, we earlier said the reasons for the drop had little to do with politics and more to do with seasonal declines in the price of gasoline.
While the national average may continue to drop for several weeks, don't believe that prices will drop significantly further. I expect that by Thanksgiving, the national average will be close to $3.35/gal, and while that sounds nice compared to prices earlier this year, it still is far higher than past years.
The final presidential debate this evening will be very interesting for one key issue- Iran. The situation with Iran certainly has the potential to shake up oil, and thus gasoline prices. Foreign policy that would risk war may drive oil prices higher, and on the flip side, a peaceful solution for everyone could result in a decline in oil prices. And while oil prices don't determine the outcome of foreign policy with Iran, prices certainly can be influenced by the decision or outcome that is taken.
We'll be watching carefully.