Gas under $4? It may be closer than you think

Drivers could see gasoline prices below $4 by Labor Day, and even a nickel decline within days, after oil prices fell again Friday.

In the last four days, oil prices have dropped more than $16 a barrel, as the market looked optimistically at calm weather, U.S.-Iran negotiations, failing bank rescues and lower demand for gasoline.

“Perhaps by Labor Day we could see gasoline prices back below $4, but we need good news,” said Phil Flynn, senior market analyst for the Chicago-based Alaron Trading Group.

The good news must include no big bank failures, no sudden spike in gasoline demand, no tropical storms that endanger oil rigs and no rebel attacks on pipelines in Nigeria.

Chicago Sun-Times