Gas Prices Expected To Keep Falling

Kristen Lowe
NewsWest 9

MIDLAND - "It's a wild, crazy way of doing it." That's how Petroleum Consultant Morris Burns explained the roller coaster of gas prices. However, that coaster is finally headed downhill.

Gas prices have fallen for two straight weeks now. Right now, the average price is $3.72 a gallon.

Now everyone wants to know how much they will fall and how long those prices will last.

"We could see it go down another 15 or 20 cents," Burns said. "We could see gas no higher than this for the rest of the summer."

The price of gas is actually set by the people at the New York Mercantile Exchange. They bid on contracts and the crude goes to the highest bidder. But as Morris told NewsWest 9, their bids are affected by what's going on in the rest of the world.

"This is an emotion, rumor-driven market," Morris said. "When Mubarak was overthrown in Egypt, when Libya went into turmoil, the price went up way higher than it should have and it will react the other way too."

On Thursday, crude traded for $100 a barrel. That translates into a wholesale price of $3.05. Add tax, transportation cost, and about 40 cents so retailer can make a profit. That makes up the daily gas price.

Prices would usually skyrocket on a holiday weekend like the one coming up. But they've been up so high lately, Morris says the only place for them to go is down. That's making some travelers very happy.

"I'm happy to see them go down because the less you have to spend on gas, the more you can spend on necessities or luxuries," FedEx truck driver, Kevin Bradley, said.