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Cornelius News

Gas prices are falling, but for how long?

QT pump July 8

July 8. By Dave Yochum. North Carolina gas prices seem to be falling by the day, but don’t count on them to go back to where they were a year ago. In fact, they could go up again, says noted gasoline industry analyst Tom Kloza.A founder of Oil Price Information Service, Kloza has covered the oil business for more than 40 years.


Prices are volatile

He says there are too many things that “can conspire to send prices higher,” ranging from an active hurricane season to Vladimir Putin. There are “incredible crosswinds still to come for crude oil and refined products,” Kloza explains.

In North Carolina

The average price of a gallon of regular gas has dropped from $4.58 a month ago to $4.39, according to AAA of North Carolina.

Kloza said it’s possible they’ll fall below $4 a gallon, but most assuredly not guaranteed.

Recession worries

Driving lower prices are prospects for a recession which means economic activity and travel could slow way down.

He expects to see margins for station operators fall as retail pricing drops and wholesale prices advance.

“Don’t put away those $5 placards just yet,” Kloza advised, referring to the numbers gasoline retailers post on signs.

Source: AAA Carolinas as of July 8