Gasoline prices are now falling as the "Ike panic" fades

After spiking up sharply in anticipation of damage from Hurricane Ike, retail gasoline prices have fallen almost 5 cents in the past couple of days, with steeper declines to come. Based on the AAA Daily Fuel Guage Report, gasoline peaked at $3.855 two days ago and are now down to $3.807, a decline of 4.8 cents. The wholesale price (October RBOB futures) is at $2.5809, indicating that the retail price is headed to about $3.18 to $3.23 (a decline of about 60 cents) in the weeks ahead, especially as the late summer driving season winds down.

-- Jack Krupansky