U.S. Gas Prices Drop 22 Cents

CAMARILLO, Calif. -- Retail gas prices have plummeted 22 cents per gallon in the past two weeks, according to The Lundberg survey of 7,000 gas stations across the country. This is the second decline in a row since gasoline prices topped off in mid-August The Associated Press reported.

The study stated that the average self-service price per gallon for unleaded regular gasoline stood at $2.65 on Sept. 8, a decline from about $2.87 which was recorded earlier. The Lundberg survey noted that this recent average price is nearly 35 cents less than last year at this time. Gas prices peaked this year on Aug. 11 at $3.02 per gallon and have fallen nearly 37 cents since.

The study also noted that the lowest gas prices can be found in Des Moines, Iowa for $2.32 a gallon. The highest, at $3.17 a gallon, can be found in Honolulu.

The study also showed that mid-grade prices averaged $2.77 a gallon nationwide, while premium cost $2.87.

In similar news, Monday showed another drop in crude oil prices, by nearly $1 a barrel, as OPEC ministers held steady with the 28 million barrel per day production target, the AP reported.

Crude oil for October delivery fell 98 cents to $65.27 a barrel on the New York Mercantile Exchange on Monday, after another slip on Friday of $1.07 a barrel.

The decision to keep supply on its upward course reflects a market that has made crude oil prices slip nearly 16 percent from the record reached in mid-July. The U.S. Department of Energy has reported that crude inventories have reached a high that hasn't been seen since the record levels in 1998.

"When supply exceeds demand, commodities have one way to go, and that's down," Oppenheimer & Co. analyst Fadel Gheit told the AP. "Barring a global crisis, or a major supply disruption, I think the trend will continue."
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