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By Robert Rapier on Oct 25, 2008 with no responses

Gas Prices Below $2

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I never thought I would see this again:

Gas prices dip below $2 in some parts of Texas

Dan Ronan, a Texas AAA spokesman, said falling crude oil prices, the slumping economy and steady gas inventories have helped reduce prices.

“They are dropping pretty quickly,” he said. “Enjoy it while it’s here.”

In Harlingen, in the Rio Grande Valley area, a gallon of unleaded gas is selling for $1.98 today at Stripes convenience store, sparking a price war with a nearby H-E-B station that was selling for $1.99.

Wow! As I said a couple of posts back, plunging prices pose a big risk for inventories. Keep a close eye on demand at these prices. If demand picks up and inventories can’t recover, we will go into spring in position for gas prices to reverse in a hurry.

Now, I think I will go out for a drive.