Gas prices edge closer to $3

The latest government survey shows prices in the L.A. area at $3.07 a gallon, down from $3.13 a week earlier. The drop follows a slide in the price of oil over concerns about how quickly the global economy is likely to recover from the recession. The L.A. numbers are still considerably higher than the national average of $2.79 a gallon, but they have fallen almost a dime in the past two weeks, with additional declines expected in time for Memorial Day Weekend. The Auto Club expects travel to be up 7.8 percent from a year ago. Travel by car over the three-day holiday is projected to increase by more than 8 percent. From the WSJ:

Falling gas prices could lead people to spend, although job growth will be paramount. Goldman Sachs economists noted recently that lower oil prices could be "the most important offset" from the European debt crisis. A $10-per-barrel drop in prices could save households about $20 billion per year in energy costs. If roughly 70% of those savings were spent elsewhere, it would boost gross domestic product by 0.1%, Goldman notes.