Gas Prices Level Off, May Have Peaked

High supply, falling demand will ease prices, say experts
By Mark Russell,  Newser Staff
Posted Apr 11, 2012 6:19 AM CDT
Gas Prices Level Off, May Have Peaked
Gas prices are posted at a gas station in Breezewood, Pa., Monday, April 9, 2012. Gasoline prices in the U.S. fell by about a penny over the weekend to $3.927 per gallon.   (AP Photo/Gene J. Puskar)

(Newser) – Gas prices are holding steady at $3.92 a gallon, and that could be on the verge of coming down, reports USA Today. With a key benchmark falling to a two-month low yesterday and growing signs of a global economic slowdown, experts think pump prices will fall short of the most dire predictions, as well as short of last year's $3.99 high and the all-time record of $4.11 set in 2008. Already in pricier markets, such as Chicago and Los Angeles, prices have dropped as much as 20 cents per gallon.

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"By the behavior of the market, things are just running out of steam," says an analyst for price tracker gasbuddy.com. "Barring any major event—refinery problems, Iran—I think prices have peaked." Although prices typically peak each year around Memorial Day, analysts think they could fall to $3.70 by early May. "Even if demand were to surge, we have flush supplies, a lot of refining capacity, and repeated assurances that Saudi Arabia would step in and hike production if there are problems with Iran," says another industry tracker. (Read more gas prices stories.)

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