There are whispers of $1 a gallon gas at the pumps again, but this would mean oil and gas exchange traded funds (ETFs) would have to take more beatings in a further downward descent.

Because recent rapid drops in oil prices with gasoline prices dropping 50 cents just last month, people are starting to think they can experience $1 a gallon for gas once again. Consumers last saw prices like those in March 1999, when it clocked in at 97 cents a gallon, writes Mark Williams for the Associated Press. Nationally, pump prices are now an average of $1.71 a gallon.

Since the abhorrent month of July when oil hit a record high of $147.27 per barrel and gas was $4.117 per gallon, five months have gone swiftly by and oil has fallen 72%. Just last week, oil has fallen 25% after an official announcement that the United States has been in a recession since December 2007.

It is estimated that for gas prices to reach $1, oil prices will need to fall to around $30 a barrel.

If gas prices continue to fall, it won’t be a benefit for that United States Gasoline (UGA), which is down 63% since its Feb. 28 inception.

ETF UGA performance

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.