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.