Gas prices reached a three month low, according to the carefully watched Lundberg Survey. Prices nationwide for regular fell $3.7833 for the two weeks which ended May 19. This represented a drop of 6.1 cents from the two weeks prior. The data is based on a canvassing of 2,500 stations. Lundberg reports that prices peak the two weeks which ended April 6 when they were only 4 pennies short of $4.

AAA Fuel Gauge data supports Lundberg. It showed yesterday’s price for regular gas based on the nationwide average at $3.689 down from $3.727 a week ago and $3.871 a month ago. The national average for a gallon of premium has finally dropped below $4 at $3.991, AAA reports.

As the summer driving season begins next weekend, prices were supposed to rise. But, WTI crude is below $92 and falling. Less than three months ago, the price was higher by more than $10. Based on anecdotal evidence, oil demand from China has fallen. Of course, the recession in Europe has killed oil demand as well.

Douglas A. McIntyre

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