Good news on gas prices?

[TexasStooge]

From Associated Press Staff Writers

A partial recovery of refining capacity, more imports and reduced demand should ease the supply crunch that has caused gasoline prices to soar since Hurricane Katrina, a senior Energy Department official says.

Department analysts estimate that four large Gulf coast refineries will probably remain out of commission for two to three months, but their product should be replaced by gasoline from other sources, a department official said Monday.

Those refineries, which suffered extensive damage to pumps and other equipment, normally account for nearly 1 million barrels a day, about half of it gasoline.

That gasoline supply should be more than compensated for by a flow of imports expected to begin hitting the East Coast in the coming days; production from other Gulf Coast refineries that have come back on line; and a significant drop in gasoline demand after Labor Day, said the official, who spoke on condition of anonymity.

The official briefed several reporters as Energy Secretary Samuel Bodman flew from Washington to Houston on Monday.

Bodman plans to tour facilities in the Gulf region, including the Louisiana Offshore Oil Port, or LOOP, where tankers unload crude, and the Strategic Petroleum Reserve on the Louisiana coast, which is lending government oil to six refineries.

The LOOP has returned to full capacity after having been reduced to 75 percent since Sept. 4. Seven large oil tankers are waiting to unload, according to the Energy officials.

Bodman met with industry executives in Houston on Monday evening to get an update on recovery efforts. It is his first trip to the Gulf region since the hurricane.

Investors reflected the growing mood that the oil and gasoline supply picture is improving after being devastated by Hurricane Katrina.

The prices of crude oil and gasoline for future delivery declined further Monday amid reports that efforts to resume production are progressing. A barrel of light crude fell 74 cents to $63.34 on the New York Mercantile Exchange, while gasoline futures slipped 9 cents to $1.87 a gallon.

"The sentiment has changed from worries over supply to worries over demand," said Fimat USA analyst John Kilduff.

The price of gasoline, which surged to well over $3 a gallon in the days after Katrina hit, eased last week, dropping on average 11 cents a gallon nationwide, according to the Energy Information Administration. A gallon of regular grade cost $2.95 on average last week. The average was $3.17, a drop of 12 cents a gallon, in the central Atlantic region.
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The cheapest price for Unleaded gas in Irving, TX is $2.79/galon.

SOURCES: DallasGasPrices.com, and GasBuddy.com

[CaptinCrunch]

Gas has droped .10 to .13 cents since last Sunday on regular unleaded across Tarrant Co. It's $2.86 a gallon at the Albertsons off of 287 & Sublet Rd. and $2.83 at the Racetrack on South Copper, both in South Arlington, Tx.

[Meso]

Wonder how long we will have to wait for a drop here... last week it went up by another 40+- cents (40/6.7 = American cents)

[azsnowman]

A article in todays Az. Republic stated by the end of the week, prices in Az. SHOULD, repeat, SHOULD drop below $2.60 a gallon.....that's EVERYWHERE but Pinetop!!! Hondah Resort Casino, as of 30 minutes ago was down to $2.87 and the JERKS in Pinetop are STILL at $3.09..........guess tourist season isn't over yet

Dennis

[Stephanie]

I've also seen a drop in unleaded regular of about $.12 - $.14 per gallon. There's quite a few in my area that are $2.97 & $2.99.