ROBBING US OF ANOTHER EXCUSE NOT TO TRAVEL:

Forces near and far push down gas prices: A drop below $2 after Sept. shock (Peter J. Howe, November 24, 2005, Boston Globe)

Industry analysts say a confluence of trends is helping push pump prices back down. International oil prices have been dropping slightly, more and more gasoline refining capacity is coming back online in Gulf Coast areas ravaged by hurricanes Katrina and Rita, and motorists responding to the higher prices this fall have curbed consumption.

With oil prices down to below $59 a barrel from over $70 in late August, many analysts expect they may fall a few dollars more in the next week.

''That could spell prices at the pump pretty decently below $2," said Art Kinsman, a spokesman for AAA's Southern New England chapter.

Although demand for gasoline has stayed flat or dropped in some parts of the country recently, AAA was projecting that 30 million Americans would take road trips over the five-day Thanksgiving period -- just 0.8 percent more than last year.

Oil prices continue lower on ample US inventory levels (AFX, 11/24/05)

Oil prices continued lower in thin trade as healthy US stockpile levels eased supply concerns ahead of winter, but analysts said the falls were limited by cold temperatures in the northern hemisphere.

At 3.41 pm, January-dated Brent futures contracts were down 61 cents at 55.60 usd a barrel. The US market is closed today and Friday for the Thanksgiving holiday.

The US Energy Department said in its weekly stocks report yesterday crude inventories rose by 400,000 barrels last week, gasoline supplies inched up 200,000 barrels, and distillate stocks gained 1.1 mln barrels.

This put total crude inventories at a very healthy 34.2 mln barrels or 12 pct above year-ago levels, and distillate supplies at 3.4 mln barrels or 2.8 pct above last year's levels.

Posted by Orrin Judd at November 24, 2005 9:39 AM