Gas Prices Drop 48 Cents in Two Weeks

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Gas Prices Drop 48 Cents in Two Weeks

NEW YORK -- The average retail price for a gallon of gasoline in the United States fell more than 48 cents per gallon in the past two weeks to $2.30, according a Reuters report citing the latest nationwide Lundberg survey.

Though it is a smaller price drop than the prior two-week period, it is still the second-greatest price crash in the history of the U.S. gasoline market, according to the survey of around 7,000 gas stations.

The price is down $1.81 from its all-time high of $4.11 just four months ago on July 11. It is the lowest price since Feb. 2, 2007, when it was $2.22, Reuters reported.

The price decline is being driven by a lower oil prices and shrinking U.S. gasoline demand, according to Trilby Lundberg, who compiles the survey.

"From here short term, barring a deep global oil demand cut, which would pull crude oil prices down further, both oil and gasoline prices may soon bottom out," Lundberg said. "And for U.S. motorists the drop is probably complete or nearly so. Longer term, stronger world oil demand growth will support higher prices, even if OPEC's recent pledges to reduce production prove empty."

On Nov. 7 the highest retail average regular grade price in the contiguous U.S. was in Burlington, Vt., at $2.70, according to the news report. The highest and second highest were Anchorage, $3.14 and Honolulu, $3.09. The cheapest gas is in Tulsa, Okla., where it averaged $1.89.