"A year ago, the price for regular unleaded was $3.50 in San Antonio.
Unless there is a major hurricane or an unexpected disruption in gasoline production and distribution, prices could continue to fall, AAA spokesman Doug Shupe said."
"GasBuddy.com's chief oil analyst, Tom Kloza, said San Antonio likely will see average prices fall below $3.
“Demand is flat, but supplies are quite plentiful, particularly in Texas,” he said.
Cheaper crude oil and cheaper ethanol, which is blended into gasoline, also is helping suppress prices, said Kloza, who expects gas prices to bottom out between Election Day and Valentine's Day.
“People are driving less,” said Ed Hirs, energy economist at the University of Houston, “and the gasoline doesn't have to be processed as much in the fall and winter,” making it less expensive for refiners to produce. That helps lower prices.
Also, “I'd thank the Eagle Ford Shale and the Permian (Basin),” Hirs said, where oil production is soaring.
Refiners are buying “a huge amount of oil from the Permian and the Eagle Ford,” and the crude can be bought at a slight discount to the price on the Gulf Coast.I don't think Kloza actually meant that the demand line for gas is flat. I think he meant that demand is simply not increasing recently (it might eve be going down if people are driving less). If the demand line is not moving and if the supply line is shifting to the right, then the price will fall.
That's also contributing to lower prices at the pump, he said."