Unemployment Fuels Lower Gas Prices

$\"\"$ SAN FRANCISCO (KCBS) -- Bay Area commuters could be paying two dollars for a gallon of gasoline before long. Unfortunately, the reduced price would be linked to climbing unemployment.

A new Triple A survey shows that gasoline prices have fallen about three cents a gallon in the past week. Oil industry analyst Peter Buetel says the supply of oil is outstripping demand at this point, contributing to a price decline. Also, he says, high unemployment has played a major role.

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"We get this number for unemployment and it shows that maybe the worst is behind us but things are not yet getting better," Buetel said. "As we\'re taking hundreds of thousands of people off the road commuting to work, that is going to cut into gasoline demand."

This time last year, crude oil future went from their highest close of $145.29 a barrel, dropping to less than $34 dollars in December. Some experts say the price for a barrel of oil could dip to $20 dollars by the end of the year, but Buetell isn\'t so sure it\'ll go that low.

(ewi)