The price of oil jumped earlier this month, reaching about $83 per barrel, but it has now dropped nearly 10% in the past two weeks. Gas should soon follow, falling to as low as $2.60 per gallon after getting dangerously close to $3 a gallon.
According to AAA, the national average for a gallon of gas on Monday was $2.70, down 4 cents from a week ago. The Midwest is reaping the greatest benefit from the decline, with prices dropping 5.7 cents to $2.62 per gallon in just the past week.
Although analysts predict the price of gas will remain stable through February, there is still speculation that the recovery will send prices back up. As auto and steel production increase and more products are shipped, demand likely will push prices higher.
Gas prices have remained relatively stable, falling less than 5 cents from its 15-month peak, but these 15 months also represent the depths of the economic crisis when demand was inordinately low.
