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Gas prices projected to fall

Durango prices remain well above national average

Gasoline prices are expected to drop this autumn to perhaps the lowest level in years, a popular gas prices website said Wednesday.

Crude oil Tuesday fell to its cheapest price in more than two years, prompting forecasts that the market trend will translate to lower pump prices.

“We expect nationwide gasoline prices will move to between $3.10 and $3.20 per gallon in November and December,” GasBuddy chief oil analyst Tom Kloza said in a news release. “The cheapest numbers are likely to occur when refining production recovers. The actual bottom in this current down cycle may not occur until January.”

Although the falling leaves may herald fall, prices at the pump, at least in Durango, aren’t plunging yet. Regular gas averaged $3.491 Wednesday in Durango, unchanged from a day earlier, according to AAA’s Daily Fuel Gauge Report.

Gas prices typically drop in the fall as refineries switch to cheaper winter-blend gasoline and demand eases.

Gas prices in Durango have fallen about 9 cents in the past month. They’re about 5 cents lower than the same date a year ago.

As usual, gas prices in Durango are well above the national average, which fell to $3.333 on Wednesday. The national average was at its lowest point since February, according to AAA.

The price of regular unleaded has dropped below $3 at some Albuquerque gas stations.

Durango remains reliant on tourists who drive into town. DoubleTree Hotel General Manager Peter Marshall said modest changes in gas prices don’t seem to affect his business much, but unusually expensive gas prices can keep tourists at home, while very cheap gas could boost traffic.

“We are definitely a drive-to destination, so a big change in that is something to be aware of,” Marshall said.

Analysts expect pump prices to follow the recent drop in crude oil prices. On Wednesday, Brent crude oil futures contracts fell to $94.16 a barrel. The commodity has been on a steady slide since July, when it started the month above $110 a barrel.

cslothower@durangoherald.com



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