12 November 2012 17:43 [Source: ICIS news]
HOUSTON (ICIS)--The national average price of retail gasoline may have bottomed out at $3.46/gal, an analyst said on Monday.
While the national average retail price has fallen by 33 cents/gal in the past month, it would have to drop by another 23 cents/gal by Christmas to reach 2011’s average of $3.23/gal, according to GasBuddy.com.
“The national average has come down a long way in the last month, but the good news may end there. It’s likely that the decreases begin fizzling, and in some areas, increases may be on the horizon,” said GasBuddy.com analyst Patrick DeHaan.
A fall of 23 cents/gal in the remainder of 2012 “doesn’t seem so feasible anymore”, DeHaan added.
Furthermore, DeHaan had predicted that the national average could drop to $3.35/gal by the US Thanksgiving holiday on 22 November, but now, he said it may not reach that point.
“The bearish rally appears to have dissipated, at least for the time being, leading me to believe we’re – at least temporarily – close to bottoming out for the short term,” he said.
He added that prices in 2012 are not likely to fall lower than his $3.35/gal prediction.
“So if you’re holding out hope for a $2.99 national average, you might be waiting a while,” he said.
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