Gas prices headed down?

Published 10:43 pm Tuesday, July 29, 2008

Gas prices in Demopolis remain below the national average of $3.99 per gallon, but there may be some even better news on the horizon.

Analysts predict crude oil prices will drop below $100 a barrel, which could translate into savings at the pump.

“For the first time probably in seven or eight years we’re predicting oil prices will actually go lower. There’s a possibility … that the high oil price that we’ve seen this year will not be exceeded next year,” Phil Flynn, vice president and energy analyst with Alaron Trading Corp, told a commodities outlook meeting at the Chicago Board of Trade.

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Oil prices have fluctuated in recent weeks, falling as much as $13 a barrel over the course of three days before rebounding.

In Demopolis, gasoline prices still range from $3.91 at some stores to a low of $3.83 at one local store. Experts predict this as a trend for the coming months

“Look for oil to get down to double digits, back near $99” a barrel, Flynn said, barring any unforeseen natural disaster like hurricanes that could temporarily affect supply.

NYMEX December crude oil was down $2.52 at $123.57 a barrel on Tuesday, down from a record $148.60 set on July 11.

The Associated Press contributed to this report.