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Are low gas prices here to stay?

09:32 PM CST on Monday, December 29, 2008

Brad Woodard / 11 News

HOUSTON -- It may not be the kind of gift you could fit under the tree, but if you're a driver and you've filled up in Houston, you may have noticed a holiday surprise at the pump. 

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Are low gas prices here to stay?
December 29, 2008

“I love it. I'm a teacher and my salary's small so I absolutely love lower gas prices,” said Kristen Lawrence, driver.

The lower prices are a welcome addition going into the New Year.  Prices around the city were as low as $1.17 at a Chevron station on Rayford Sawdust near The Woodlands, and $1.19 at a Shell station.

It was only two months ago when everyone was excited that regular unleaded had dipped below $2.00. But what goes up, must come down, and the same holds true in reverse – especially when it comes to gasoline prices. 

In other words, when it comes to low prices at the pump, consumers shouldn't get used to them.

“Depending on what the economy does, I think crude could bounce back pretty quickly. It may not go back up to $145 a barrel, but certainly a more sustainable range of $80 or $90 a barrel,” said Bob Tippee, Oil & Gas Journal.

Experts say the people in the supply chain can't make money. Plus, some worry sustained low prices would discourage conservation and alternative fuels. 

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