Today’s fuel price musings - Prices could creep down a little more

July 1st, 2009 at 05:48pm Thomas V. Bona

Traded emails today with Tom Kloza, chief oil analyst with the Oil Price Information Service, to see how long the recent drop in gas prices will continue.Basically, he said maybe/maybe not. He thinks the prices from earlier this month will be close to the peak for the year…

Generally, I wouldn’t call it long term relief.  I’m pretty sure that you’ll see very high prices again in this decade, perhaps even in the $3-$4 gal range.

But not yet.  The big sprints in the last year (lower in the last half of 2008, and higher in the first half of 2009) are over, and we’ll see gasoline prices jog slightly lower (probable) or higher (less probable) for the next 60 days.

More in Monday’s paper and on BusinessRockford.com as I write about where prices are headed. What questions do you have for local and national experts?

Here are the prices from this morning (courtesy of AAA’s fuelgaugereport.com):

Gasoline: Rockford dropped slightly but remains at $2.68 a gallon today. We’re third in the state and  tied at 87th of the nation’s 280 metro areas. The Illinois average dropped almost a cent to $2.74 a gallon. The national average dropped slightly but stayed at $2.63 a gallon. Illinois has the eighth-highest gas prices in the nation, including the District of Columbia.

Diesel: Rockford dropped almost a cent to $2.66 a gallon. We have the fourth-highest diesel prices in the state. The state average dropped slightly to $2.68. The national average increased slightly but stayed at $2.63. Illinois has the 14th-highest diesel prices in the country, including the District of Columbia.

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