Decline in Gasoline Prices May Continue

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asoline prices have fallen more than 20% since early August and could be poised to slide even further, the Wall Street Journal reported Thursday.

Industry experts told the Journal that the decline is likely to continue, with falling gasoline prices providing consumers with extra spending power, which could in turn buoy retailers as economic growth shows signs of slowing.

A drop in crude oil prices is largely responsible for gasoline’s downturn, the Journal said.



On Tuesday, crude oil futures closed at a seven-month low of $58.60 a barrel on the New York Mercantile Exchange before rebounding to close at $59.41 on Wednesday.

Difficulties created by new federal regulations that mandate higher ethanol content for gasoline blends have eased as suppliers have adapted to the changes, the Journal said.

In addition, a mild Atlantic hurricane season spared U.S. oil refineries from batterings like those they received last year when Hurricanes Katrina and Rita struck the Gulf coast, the Journal reported.