Tapping Oil Reserve Still Won't Lower Gas Prices Below $3

Image via WikipediaGasoline prices should drop more quickly now that governments are stepping in to pump up world oil supplies, but drivers are still unlikely to see last summer's levels below $3 a gallon.

Energy market experts are also concerned that the message from the International Energy Agency and U.S. Department of Energy release of 60 million barrels of reserves is that the global economy is weaker than believed.

"The good news is the consumer will see cheaper prices at the pump. I think we could start ticking under $3.50," said Andrew Lipow, president of Lipow Oil Associates. The national average for gasoline is $3.61 per gallon, according to AAA.

Gasoline prices have been been falling, from a high of $3.98 nationally in mid-May.

"I think we were headed lower mostly because of economic softness," said Tom Kloza, chief oil analyst at OPIS. "I believe this will hasten some declines, and I still think that $3.25 to $3.75 is the likely summer 2011 range. I do think you'll see some of the cheaper places get close to $3."

Gasoline prices a year ago averaged $2.74 a gallon, according to AAA. More...