US finds possible bottom in gasoline market

NEW YORK (Reuters) -- The average price of a gallon of gasoline in the US fell 5 cents in the past two weeks to its lowest level in more than seven years, according to a survey released this week.

Regular grade gas fell to around $1.77/gal in the Feb. 19 survey, from $1.82 on Feb. 7, when the previous survey was taken. The price was the lowest since Dec. 19, 2008, when it was roughly $1.66, survey publisher Trilby Lundberg said in an interview.

The latest price was 56 cents lower than a year ago, mainly in response to weak oil prices, Lundberg said.

After tumbling to their lowest levels since 2003 amid a global glut prior to the last survey, oil prices have stabilized in recent weeks, and demand for gasoline has risen, which could point to higher prices to come, she said.

"It may be that we have finally seen the bottom of this price crash so that prices at the pump would stabilize and perhaps rise by a few pennies per gallon over the next few days."

In the Lundberg panel of around 2,500 gas stations in large cities in 48 states, the lowest average retail price for gas was in Tucson, Arizona, at $1.42/gal, and the highest was in San Diego, at $2.40/gal.