Gas Prices Dip Down To Lowest Levels Since Early 2007
Posted October 28, 2008 12:00 pm.
This article is more than 5 years old.
In these troubled economic times consumers need a break wherever they can get it – and it appears they’re getting one whenever they fill up their gas tank.
Prices at the pumps are lower than they’ve been in more than a year. After months of paying upwards of $1.30 a litre, the marquee is finally back below a dollar a litre.
An overnight drop of about four cents puts current prices at about 93 cents a litre around town. The last time drivers were paying that was on February 20 of 2007.
Gas prices are dropping along with the cost of crude oil, which has plummeted in recent months amid the global stock market crisis. It started the week at about $63 a barrel, a major reduction from what it was in the summer. It reached a record high of $147.27 on July 11.
“It’s quite a severe slowdown that’s been priced in already,” noted Jonathan Kornafel, Asia director for market maker Hudson Capital Energy in Singapore. “If the credit market remains tight and the recession worsens, we could certainly go into the $50s and even below $50, but that would be an overshoot to the downside.”
There’s no telling how long these current prices will remain in effect, so drivers may want to take advantage while they can.
