I WANT TO GET TO THE PRICE OF
GASOLINE.
OVERNIGHT WE HAVE A NATIONAL
AVERAGE COME IN AT 2.36 CENTS
PER GONE JOINING US NOW THE
ANALYST WHO GOT OIL RIGHT.
LET'S SEE WHAT HE'S GOT TO SAY
ABOUT GAS.
OKAY, 236 NATIONAL AVERAGE HOW
LOW ARE WE GOING ANDY?
>> I'M EXPECTING THAT SLIDE IS
GOING TO CONTINUE PROJECTING TO
GET TO 2.30 A GALLON NATIONAL
AVERAGE BY NEW YEAR.
THAT'S IT NO FURTHER DOWN?
>> WELL, IT IS POSSIBLE TO GO
EVEN FURTHER BELOW THAT.
BUT YOU KNOW, AS VOLATILE AS OIL
MARKET HAS BEEN, IT IS HARD TO
SAY THERE'S CHANGES AFOOT IN
SUPPLY DYNAMIC ALTHOUGH OIL
CONTINUES TO BE UNDER PRESSURE
NOW FROM FED DECISION AND WHAT
THE EQUITIES MARKET IS DOING.
IT IS CERTAINLY POSSIBLE TO SEE
225 MAYBE EVEN BELOW THAT COME
JANUARY AS WE GO INTO THE WEAK
PEST GASOLINE DEMAND PART OF THE
YEAR.
>> OKAY NOW TELL ME ABOUT THE
WEST COAST BECAUSE I SEE A LIST
OF HOW MUCH IT COST PER GALLON,
CALIFORNIA, OREGON, WASHINGTON,
NEVADA, AND IT IS ALL OVER 3
DOLLARS.
WAY ABOVE NATIONAL AVERAGE WHY
IS THAT?
>> WELL IT IS QUITE EXPENSIVE
OUT THERE NUMBER ONE DUE TO
TAXES THAT ARE IMPOSED ON THE
DRIVER IN CALIFORNIA.
NUMBER TWO, IS THAT THE
CALIFORNIA WEST COAST MARKET IS
ISOLATED AND WHENEVER WE HAVE A
REFINING PROBLEM OF OVER THERE,
WE SEE PRICES START TO SHOOT UP.
SO IF YOU WOULD HAVE LOOKED THE
STATE AVERAGE FOR CALIFORNIA IS
LIKE $3.40 A GALLON BUT IF
YOU'RE FORTUNATE AND LIVE IN
MISSOURI, THE PRICE IS ABOUT A
DOLLAR 95.
SO YOU CAN CLEARLY SEE THE
GEOGRAPHIC DISPARITY BY BEING
ISOLATED.
KNCH YOU GO BACK TO PRICE OF OIL
FOR A MOMENT IT IS WAY DOWN 46
DOLLARS PER BARREL.
IS THAT LARGELY BECAUSE OF
AMERICAN FRACKERS AND AMERICAN
TRILLERS --
ARE WE ONES THAT IS DRIVING
PRICE DOWN PRIMARILY?
>> I WOULD SAY THE MAJORITY OF
PRICE FALL IS DUE TO THAT.
BUT IT HAS ALSO BEEN
CONTRADICTED BY RUSSIA PRODUCING
AT A RECORD AM OF NEARLY 11.5
MILLION BARREL A DAY AND OPEC
HAS BECOME VERY --
LESS EFFECTIVE IN CONTROLLING
SUPPLY, WE SAW QATAR LEAVE OPEC.
>> YEAH.
WELL --
THEY SAY THEY'RE GOING CUT
PRODUCTION.
BUT IT DOESN'T AFFECT A PRICE
WE'RE STL UP 46 DOLLARS A BARREL
COMING DOWN.
>> WELL I DON'T THINK THEY'VE
CUT PRODUCTION ARE ENOUGH IN
ORDER TO GET THE OIL MARKET BACK
AND BALANCE WHEN WE SEE REFINE
PRODUCTS WE SEE, YOU KNOW, GOOD
SUPPLIES OF GASOLINE NOT ONLY
HERE BUT IN ASIA.
IF ANYONE ON THE WEST COAST HAS
ANYTHING TO LOOK FORWARD TO, IT
IS FACT THAT THERE'S NEW
REFINING CAPACITY IN A
SIGNIFICANT AM OF IT COMING ONIS
LINE IN ASIA, AND THAT EXCESS
GASOLINE IS GOING TO MAKE ITS
WAY OVER TO THIS HEMISPHERE.
SUM IT UP LIKE THIS AND DOWN
ANOTHER 5 TO 7 CENTS PER GALLON
BY EARLY PART OF NEXT YEAR.