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Update on Rapid Drops in Price of Gas

Yesterday we reported that gas prices around the nation were set to drop rapidly as the winter quickly approached. Today’s trading only intensified this shift to lower prices. According to the Associated Press:

“Benchmark oil dropped $2.32, or 2.6 percent, to $86.29 in afternoon trading in New York. It’s lost about 6 percent in the past three trading sessions.

That’s starting to mean more relief at the gas pump for U.S. drivers. The national average for a gallon of regular gasoline dropped 2 cents overnight to $3.65. The price has fallen 17 cents in the past 12 days.”

A variety of factors on both the demand and supply sides of the market are contributing to this drastic drop in price. The debt crisis in Europe depressed worldwide demand while US stockpiles reached the highest levels in months. If these trends continue, as they are expected to, it is likely that Americans will experience an extra thirty cent price drop by Thanksgiving.

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