Oil prices began to decrease at the end of the summer of 2006, closing below $66/barrel on September 11.[2] The national average gas price dropped to $2.70/gallon in early September, down $0.11 from the previous week. Some cities were seeing average prices below $2.40/gallon.[3]
As of September, prices continue to fall, and the average cost of gasoline per gallon (nationwide) is below $2.50. On September 19th, crude oil fell $2.14 to a 6-month low of $61.66. The recent significant fall in the price of crude oil has led some to speculate that price of gasoline may fall to as low as $1.15/gallon[4] By October 3, the price closed at $58.68, its lowest close since mid-February. [5] Reasons for the recent price decreases have included easing tensions with Iran, ample supply and the lack of hurricane activity in oil-producing regions of the Gulf of Mexico.
After news of North Korea's successful nuclear test on October 9, 2006, oil prices rose past $60 a barrel, but fell back the next day. Also, for several days in early October, oil prices bounced around the $60 mark on possible news that some OPEC countries would cut oil production by 1,000,000 barrels a day. OPEC had not cut its production since December 2004. However, the oil market has lately seemed to shrug that news off, especially considering that Saudi Arabia said that no such agreement exists (to cut production).
On October 11th, oil prices fell below $58 for the first time since February.
-taken from Wikipedia