Gasoline prices tumble in U.S., California
The average price of gasoline nationally tumbled to $3.809 a gallon today, falling 7 cents in as many days -- a trend that's expected to continue as long as the cost of crude oil continues to slide.
In California, the cost of self-serve regular averaged $4.118 a gallon, down 8.7 cents from last week. That's still $1.19 above the year-earlier price.
Crude oil futures fell 75 cents to $114 in New York trading, commodity's lowest close since the beginning of May, despite concerns that shipments could be disrupted by the military conflict between Russia and Georgia.
In addition, a recent explosion in Turkey stopped oil exports through a pipeline that carries close to 100,000 barrels a day to world oil markets. The pipeline carries oil from Azerbaijan through Georgia and Turkey to the Mediterranean for shipment.
"I expected we'd have a bit of a reaction today" to the pipeline disruption, said Rick Mueller, director of petroleum markets at Wakefield, Mass.-based Energy Security Analysis Inc. "But there's an overall view in the market right now that demand is really cratering."
Instead, the oil market focused on new data showing that oil demand is falling in China, the fast-growing market that was a big factor in pushing up the global crude prices.
elizabeth.douglass@
latimes.com
