economic outlooks is worsening
As gas prices continue to slide in San Antonio, some experts say #3 a gallon is just around the corner, 1200 WOAI news reports.
The average price of gas in San Antonio today is $3.49, below $3.50 for the first time since mid February. Seeing prices in the $3.20 is not uncommon.
Texas oil analyst Mark Anderle says several factors are working in favor of weakness in gas prices. He points to worries about economic growth not just in the U.S., but in Europe, where the Euro may be unraveling, and in China, where red hot economic growth appears to have stalled.
He says Iran is no longer as bellicose as it was earlier this year, when it was repeatedly threatening to disrupt oil supply lines and attack Israel.
“On top of that, now that gasoline is a financial commodity, it moves along with the stock market over the last several years, and the stock market of course has been taking a beating all of May,” he said. “Combine those two factors, and we get a nice sell off.”
Anderle sees the possibility of more global financial weakness, leading to lower prices for gasoline.
“We could see some very dramatic drops in a short amount of time, and based on everything we’re looking at right now, I think we’ll see three (dollars) again,” he said.