Gas Prices Dip Below $3

Average gas prices in the U.S. slide to below $3 a gallon for first time since 2010: USA Today
5:36 | 11/10/14

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Transcript for Gas Prices Dip Below $3
Okay. It's Monday November 10 the markets in New York are open and are being never this morning two dollars and 99 cents as then. A gallon which is now the average price of gasoline in the US the facts first time gases dipped below three dollars a gallon. Since 2010. Gasoline prices have in fact plunged from a national average of 370 a gallon. Back in June. Everyone I'm down Cutler in New York's here deet tails on the citing gasoline prices killed hundred of thestreet.com -- happy Monday morning to you. Still well what what is going on here what why is gas line so much of the past. More months. The reason you've seen the slide is the underlying which is crude oil has plunged significantly in the two major drivers to that is we have an oversupply. Globally and also the strength of the US dollar all commodities are. Priced in US dollars and hired that moves the lower that's good ago but the real key issue is oversupply. We should get more clarity into that in OPEC's November 27 meeting. That's going to be key date and you can bet that we'll see some volatility around that because really what's happening is oil is one of the true last markets where it's. Really based on supply. And demand and what's happening is in the USB ramp up production so significantly. Over the past three to five years and conjunction with what they're producing out of the au Pak cartel. That we have an oversupply plot right now good for consumers. Not that great for an oil producer right well and ask. About their who is exactly given the benefit from all this mean we're all smiling at a gas station and fill up the fact that we have a little money that's been in our pocket. Al yes effectively to tax break for consumers which is fantastic you know over the past five to six years with the financial crisis that we've been through in the US and globally for that matter. Keeps us really have not gotten a break. This is gonna be the first year that you've seen since 2008 where consumers have more disposable you come again it's like a tax break for us. And that's going to be great for consumer discretionary where you might have hikes you seeking more money because you're good your gasoline bill has gone up. Get an extra forty to fifty bucks in your pocket each week. That means you can potentially take more trips travel that more purchase some airline ticket. Buying extra pair of shoes pick up an extra pair sweaters even if you want to look at consumer electronics may be by an extra Xbox game for your kids this Christmas so. For the consumer it's fantastic. It's tax free money and for the retailers it's. Great there where we're looking to seal with a 4%. Increase. In sales for holiday 2014. And that that's just great all around we really confused that. Boost to the economy because adds jobs are growing gasoline prices are dialing back. The consumer is effectively putting all that money back into the cycle. Right so put it back in the cycle and those stickers to put it out there but what about energy and a broader picture there where do you expect things are gonna go to this fall as the temperatures discerned drop. As temperatures are starting to drop you'll probably see a little bit of balance in energy prices it's just the cyclical polity that I think it might be a little bit early we'll certainly see in natural gas because in the north east and of course there's there's bad weather in the midwest today. Anytime you get that first polar vortex of the first freeze jurors can get a little pop in natural gas I think in terms of crude oil. You will sit up volatility in to the OPEC November 27 meeting unless they call it. An emergency meeting prior to that. But I think in terms of prices being depressed at the pump. You could see that for quite some time because if the oversupply situation continues to exist. And it's not being drawn down that's why each Wednesday when we get the data from the government looking if there's an old for supply or draw down. A gasoline and the other products until we start to see that number come back it ended. You're not gonna really see it increase the price of the pump and more good news for consumers. Eight takes a few days for the price of the pump to actually catch up. With what you're seeing the underlying commodity market so we could continue to see a pullback if prices at the pump even more so which is which is great news all around for the consumer. Right eyebrow actually another to put up a lag time the Celeste would you want to ask you them way is this opportunity for investors then. Yes for short at back to have spoken about this just about every week. Retailers have been beaten up over the past couple of years and we're starting to see some good data com and in fact on Friday we get all the retail sales data from the government. We had a little bit but negative number in in September. But the expectations for October are fantastic. And we'll start to hear more of that again is that that's lacking you'll hear in November and you'll hear in December and that's good for consumer discretionary retail stocks. Answer remind everyone in the audience that we have a bunch of big. Retailers reported an S&P this week. Macy's Kohl's Wal-Mart were up all of the audience shops somebody here how well they're doing. Which is. A good opportunity to get in you think you still have some time. To invest in some these names have been severely beaten up because of consumer such as you would I. More money in our pockets with less paying the pomp. We get to go expend money at places like to a Wal-Mart Kohl's and Macy's with that matter so you know like some have a chance to get in here. Getting in of those deals very early art till now Andrea from thestreet.com Joseph thanks so much as Monday morning. Take extend even much of the big number and of course you keep up with all is headlines right here on abcnews.com. I'm Dan that's where New York.

This transcript has been automatically generated and may not be 100% accurate.

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