Big drop in gas prices

In just one week, the average price of self-serve regular in the L.A. area plunged 14 cents a gallon, to $4.339 - and some gas stations are pricing regular at under $4 a gallon. That marks the sixth consecutive week pump prices have fallen, according to the government's survey. It seems as if the old supply-and-demand bit is finally taking hold. The price of oil has dropped $22-a-barrel in the last few weeks because demand has fallen so much (Americans in May drove 3.7 percent less than they did a year earlier, the third-largest monthly drop in the 66 years such data have been recorded). And more drops could be on the way. As oil analyst Jim Ritterbusch tells CNBC, "It just really feels like a market that wants to head south for several more dollars, probably down to $117 during the next one or two weeks." Trader John Blass is looking at more volatility, with a range of $110-135. Now, let's be clear: $4-a-gallon gas is still plenty expensive and still an inhibitor to growth. But with so much of the current troubles based on a feeling of bad times, you shouldn't discount the relief - psychic or otherwise - of paying 15 bucks less to fill your tank.


More by Mark Lacter:
American-US Air settlement with DOJ includes small tweak at LAX
Socal housing market going nowhere fast
Amazon keeps pushing for faster L.A. delivery
Another rugged quarter for Tribune Co. papers
How does Stanford compete with the big boys?
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Further fallout from airport shootings
Crazy opening for Twitter*
Should Twitter be valued at $18 billion?
Recent stories:
Letter from Down Under: Welcome to the Homogenocene
One last Florida photo
Signs of Saturday: No refund
'I Am Woman,' hear them roar
Bobcat crossing
Previous story: Amgen's big bounce

Next story: Tuesday morning headlines

New at LA Observed
On the Media Page
Go to Media

On the Politics Page
Go to Politics
Arts and culture

Sign up for daily email from LA Observed

Enter your email address:

Delivered by FeedBurner


Advertisement
Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
LA Observed on Twitter and Facebook