Reply #43: Gas Prices Fall As Temperature Climbs

[citizen snips]

NEW YORK (AP) -- Balmy weather in the Northeast more typical of June than January have set off a sharp drop in crude oil prices and fed consumer hopes that gasoline prices would fall as well.

Gasoline prices were down Monday from last week, due to both the falling price of crude -- which accounts for the bulk of the cost of a gallon of gasoline -- and seasonally weaker demand in January.

A gallon of regular unleaded gasoline costs an average of $2.305 nationwide, according to a AAA survey of about 85,000 self-serve gas stations. That's down slightly from $2.325 last week.

Temperatures climbed abnormally high from Boston to Washington on Saturday, capping an unseasonably warm week that saw oil prices slide nearly 8 percent. The cost of crude accounts for more than half the price of a gallon of gasoline and, lately, the weather has been oil traders' touchstone.

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http://biz.yahoo.com/ap/070108/gasoline_market_spotlight.html?.v=1