Gasoline finally back down to $3.70

The latest AAA Daily Fuel Guage Report shows the average retail price for a gallon of regular unleaded gasoline is down to $3.702. Gasoline has fallen for 35 consecutive days, but only today did the cumulative decline add up to a full 10%. Still, that is a major and very welcome milestone. And, more declines are in the pipeline, as signaled by the commodities futures market.

The wholesale price (September 2008 Gasoline RBOB futures contract) today is sitting at $2.9815 per gallon. Add 60 to 65 cents to the wholesale price to get a rough target retail price, which would be $3.58 to $3.63. That means we could see declines of up to 7 to 12 cents over the next week or two.

-- Jack Krupansky