U.S. gasoline seen at $1 a gallon in 2009: Alaron

CHICAGO (Reuters) – The price of gasoline, which soared to above $4 per gallon in July and hit motorists and industry hard, could retail at an average $1 per gallon next year, brokerage Alaron Trading Corp forecast on Thursday.

Alaron energy analyst Phil Flynn told a conference in Chicago he expected crude oil prices to range between $25 and $50 per barrel in 2009, with the short-term target being $35.

“We’re not going to see commodities turn around overnight. We’re entering a new era in commodities with more stable prices and we will not see the big spikes in prices we’ve seen in the past,” Flynn said.

Crude oil plunged about $108 per barrel, or nearly 75 percent, from a record high $147 a barrel in July to below $40 on Thursday as global consumption continues to slow.

Flynn also said that average retail gasoline prices in the United States next year could fall to $1.00 per gallon from the current average of nearly $1.70.

Reuters