San Diego gas prices flirted briefly with sub $3 a gallon prices last week, but have crept back up above $2.99 for diesel and regular unleaded on average. Yet demand is down and there are an estimated 125 million barrels of oil stored offshore in supertankers with holds that are bursting with surplus crude. This is oil pumped last year that still can't be sold because of low demand.  Blame the speculators. Full Story

Gas prices finally slipped below the $3 mark even though oil prices are climbing. Be suspicious: California's refineries are producing at only 75% capacity in order to restrict supply and protect the industry from a massive price avalanche. MORE.

Despite a rash of refinery closures, fires, and other potential supply disasters, gas prices should collapse below the $3 mark, on average soon. "They're going to drop faster than a thick brick," says Charles Langley, Manager of UCAN's Gas Project. Get the Full Story.

UPDATED Monday, September 28: Contrary to what we published on Friday, gasoline prices in San Diego dropped over the weekend after we predicted a sharp increase. More.

  SKY HIGH ... Just as we predicted, gas prices have climbed past the $3.10 a gallon mark, setting a new record for 2009. DETAILS.

On August 9 the lead story in the Union Tribune Business Section was about high gas and oil prices. The story closed with a quote from me that said " ... the problem is the low supply of surplus gasoline, which drives up prices."  But don't think for a moment that supply and demand are responsible for oil prices.  There is more to the story.

UCAN's Gas project is reporting a painfully slow but steady decline in the cost of fuel for San Diego motorists. Get the facts, plus data on what gas cost last year on this day.