Gasoline back under $2.40 (updated)

Oops... since I blogged this morning, the dollar fell sharply and oil and gasoline soared, so $1.99 by the holidays is no longer assured.  Sorry about that.

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Retail gasoline price declines continue to ratchet downwards, with the AAA Daily Fuel Gauge Report price falling to $2.391, finally back under $2.40.

December RBOB unleaded gasoline futures are at $1.5240 (up 16.15 cents from yesterday), indicating that retail prices are headed for $2.12 to $2.17 within a few weeks, about 25 cents below the current price level.

The media is not giving these gasoline price declines much press, but all of this extra cash in the pockets of consumers will help to buoy consumer sentiment and domestic spending as well as boosting GDP (or at least limiting its decline) by reducing the subtraction due to imports of crude oil. Businesses and government will benefit from the steep price declines as well.

-- Jack Krupansky