Saturday, July 28, 2007


BLOOMINGTON, Jul. 28, 2007 (McClatchy-Tribune Regional News delivered by Newstex) --
Gas prices have dropped 45 cents in Bloomington-Normal the last two weeks, and they're falling faster in neighboring communities.

Regular unleaded sold for $2.85 in the Twin Cities Thursday afternoon, after hitting $3.29 on July 11.

In Springfield, gas cost $2.73 a gallon Thursday, according to reports on www.illinoisgasprices.com. It was $2.80 in Champaign and Peoria, leaving room for prices to drop more in Bloomington-Normal.

'If it's a normal year, yes, you might see a little bit more relief,' said Bill Fleischli, executive vice president of the Illinois Petroleum Marketers Association.

Prices typically fall late in the summer, he said, as vacationers return home and children prepare to return to school.

Around Labor Day, however, prices could peak again, he said, and winter-heating demands can put stress on crude-oil products like gasoline.

'This is usually the point in the year when volumes decrease and prices start dropping,' Fleischli said.

Any number of events could trigger volatility in the oil market, however -- storms, Middle East tensions, refinery problems, among others.

'It's kind of a goofy market,' he said.

Motorists have noticed that all summer, as gas peaked at $3.29 and dropped as low as $2.83 in Bloomington-Normal.

When regular unleaded hit $3.29 July 11, an analyst with the Oil Price Information Service said consumers likely paid the highest prices they'd see all year as refineries in Kansas, Indiana and Oklahoma unexpectedly shut down.

In its weekly petroleum outlook, the federal Energy Information Administration in Washington D.C. said oil stocks could drop significantly, which could put pressure on the price of gas and other petroleum products.

Newstex ID: KRTB-0166-18489484


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