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Gas prices expected to drop 50 cents by summer

4 years ago May 08, 2011 May 8, 2011 Sunday, May 08 2011 Sunday, May 08, 2011 8:34:18 AM CDT in News
Source: Associated Press

NEW YORK- Several factors combined this week to stem the rapid rise in gasoline prices and analysts say they should gradually start going the other way.

By summer, they could be down as much as 50 cents a gallon, but experts warn that the drops won't happen quickly.

Oil, which is used to make gasoline, has tumbled 15 percent in price. Investors who were worried about rising oil supplies and falling demand in the United States helped drive down the price as did a stronger dollar.

It could provide some relief to drivers from suffocating gas prices and it might help lift consumer spending, which powers about 70 percent of the economy.

A 50-cent drop in prices would save U.S. drivers about $189 million a day.

Typically, gas prices peak each spring, then fall into a summertime swoon that can last several weeks.

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