Gas prices drop to $2.79

In Gas prices and mileage down, shopping up, I posted Professor Farnsworth to mark that the corner station had matched all the rest in the neighborhood at $3.85.  Also, the KCRA video in that entry forecast that prices would continue to drop.  Yesterday, all four outlets hit a new low in the history of this blog, $2.79.  Time for the limbo kitty to return.

Follow over the jump for what the local price environment and commodities futures say about current and future prices.

First, GasBuddy indicates that prices could drop some more.  The national average is now down to $2.86 and continuing to sink.  However, Detroit's average is $2.89.  Prices were ready to fall after two weeks of the outlets down the street holding steady at $2.85, even as the corner station made a charge into No Man's Land by raising its price for regular to $3.09, then retreating in stages to $2.99, $2.95, and $2.87 before matching the rest.  Some things never change.

Next, Oil-Price.Net shows that both WTI and Brent have broken through yet another support level, with WTI below $75 at $74.58 and Brent below $80 at $78.10.  Both of those suggest more price drops at the pump.  As Kunstler wrote in Omenland, "The oil price fell on its face so hard it crashed through the floorboards."

Finally, Barchart shows that RBOB is right at its floor of $2.00 to $2.05, with the spot price at $2.0470, the December contract at $2.0470, and prices between $2.00 and $2.05 for all contracts through March.  At this rate, prices at the pump will remain below $3.00 until the end of winter.