Iraq has the second largest proved oil reserves after Saudi Arabia. Prices are going down because there's an anticipation that, before too long, Iraqi production will be back to where it was before the first war -- and that will have a very depressing effect on prices. Watch for prices to go back into the $25 range -- maybe lower.
It takes a very long time for a barrel of crude oil bought today to make it through a refinery and into a gas station's tanks. Market prices for gasoline won't respond to the daily fluctuations of crude oil.
Americans have the cheapest gasoline in the world, and Canadians are a close second. It's cheaper now, in real dollars, than it was in the 50s. North Americans are spoiled rotten on energy prices -- and that's why our energy consumption is the absolute worst in the world per capita.
Most of the price escalations in the last decade have come from taxes -- especially in Canada.
If there is ever to be any hope of reducing the per capita consumption in North America, the price needs to go much higher -- so high that no one can afford to run a gas guzzler any more. Then sanity will prevail.
Until then -- be grateful you still have cheap gas, and try not to waste it.
Never let the facts get in the way of a good story.