Drivers to take a break, as gasoline prices fall (AP)

NEW YORK – a trip summer might not be a bad idea after all.

Gasoline prices are falling fast. In the past 7 weeks, the average retail price of U.S. fell 38 cents to $3,60 per gallon. By mid-July is expected to drop another 25 cents.

When prices approached $ 4 in early may, the pilots are worried that $ 5 gasoline was a possibility this summer. But since then, oil prices have collapsed, the result of slow economic growth in developed countries, weaker demand for oil and gas, and this week's decision by United States and other countries to release 60 million barrels of oil from strategic reserves. Economists say the fall in prices will benefit consumers by leaving the money in their wallets and making them feel more free to spend on travel, shopping and restaurants.

Ron Meyers, 51, a handyman from Little Rock, Ark., was doubtful that he could afford the drive to visit family in Pennsylvania. Now, thanks to cheaper gas, the journey is over. And intend seeing some more summer movies, too.

"You can go out and have fun and have left in your pocket a little bit of money," he said.

Economists say that while, for example, a drop of 25 cents per gallon a typical driver save just $ 12.50 per month, has a huge effect on the economy as a whole is on the psychology of consumers.

Naveen Agarwal, which helps small businesses and manufacturers manage fuel costs as CEO of Pricelock, Redwood City, California, said he expects drivers will travel farther distances this summer as originally planned. And you pass as they go.

"Will be a bit more liberal about their consumption instead of having just a barbecue in their backyard," said Agarwal.

Instead of thinking of ways to slice, Dykstra family of Orange City, Iowa, will now be able to spend a little more for meals and souvenirs when visiting Chicago.

"We actually budgeted for 5 dollars a gallon," Mark Dykstra, 46, a supermarket assistant manager who will be traveling with her three teenage children, said earlier this week.

For the first five months of the year, gasoline prices went in one direction: up. Growth of economies, especially in Asia, burned more gasoline, diesel and jet fuel. Turmoil in the Middle East and North Africa oil prevented from reaching the market and traders bid oil scared at higher prices.

Oil peaked at $ 114 per barrel in April. It is now up to $ 91 per barrel after a decline of 2 percent this week.

Energy economists and investment bankers cautiously to Wall Street that oil could rise above $ 100 once again next year, particularly if the oil producers are struggling to meet the growing global demand. Hurricanes in the Gulf of Mexico or further unrest in the Middle East could also raise prices.

Agarwal, predicted that gasoline prices will return to a range of $ 3.50 to $ 3.75 per gallon by the end of the year. Goldman Sachs and other investment banks predict oil will rebound next year at levels that would have pushed gasoline above $ 4 for the first time since 2008.

"If you're wondering if the gasoline could be $ 3.50 or higher to always, the answer is Yes," said the oil analyst Andrew Lipow. "People will have to make some changes."

Adzi Vokhiwa, 22, of Acworth, GA, is raised by the fall in prices, but skeptical. "No matter almost because I know (prices) are going to come back again," he said.

She commutes 60 miles a day from his home in Acworth, GA, to his work in downtown Atlanta. Twice a week she puts $ 40 of petrol in his Kia Soul and asked his boss to change his schedule so you can carpool with a couple of days a week.

High gasoline prices have made it tougher for Vokhiwa save for graduate school. But for now, at least, she says that she will have a little more money to put towards that goal.

Randy Herring, 46, of Montpelier, VT had been borrowing Subaru Legacy of wife instead of driving his Chevy Tahoe SUV and he had contemplated pulling off her bicycle. Now he is adopting a strategy to capitalize on the fall in prices. He started to give the ' Tahoe the equivalent of a shot of gasoline every now and then so he missed the next save.

"Everything I need for the week, and that's all," said herring.

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Associated Press writers Michael Rubinkam in Allentown, Penn. and Barbara Rodriguez in Chicago contributed to this story.

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Chris Kahn twitter.com can be reached at/ChrisKahnAP. Jonathan Fahey twitter.com can be reached at/JonathanFahey

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