As summer nears, expect gas prices to go ... down?

Memorial Day present: Gas prices falling, thanks to Europe debt crisis, rising supplies




Get it while U can : )
FILE - In this April 12, 2010 file photo, gasoline sells for $2.92.9 for a gallon of regular unleaded at a service station in Whitesville, W.Va. Experts who had been all-but-guaranteeing a national average of more than $3 per gallon by Memorial Day now say prices have probably peaked. (AP Photo/Amy Sancetta, file)


Mark Williams, AP Energy Writer, On Wednesday May 12, 2010, 8:17 am EDT
Gas prices are poised to fall as Memorial Day approaches, a welcome change for motorists who have gotten used to seeing increases cut into their summer vacation money.
Experts who had been predicting a national average of more than $3 per gallon by Memorial Day now say prices have likely peaked just beneath that threshold. Rising supplies and concerns about the global economy have helped send wholesale gasoline prices plummeting by 25 cents a gallon since last week.
"Gasoline supplies are about as good as they've ever been going into the summer driving season," says oil analyst Phil Flynn of PFGBest in Chicago.
The decline in prices is starting to filter down to motorists, but it will take several weeks for the full effects to be reflected in pump prices, which average $2.91 nationwide.
By summer, the nationwide average could be below last summer's peak of around $2.70 a gallon, says Tom Kloza of Oil Price Information Service. In July 2008, the retail price of regular gasoline peaked at $4.11.
Economists say the coming drop in energy costs will not have a significant impact on overall consumer spending or economic growth. But motorists will feel better having a little more money to save or spend on clothes, dinner or a summer vacation.
Chrystal Harned, who paid $3.01 a gallon the other day, says she will be more likely to take a road trip this summer if prices fall.
"It's good to go see people and get out of the town and spread your wings a little bit," says the 36-year-old waitress and bartender, who lives just outside Rochester, N.Y. She says business is picking up these days, but "you don't want to put it all in the gas tank."
Since May 3, oil prices have declined by 12 percent to $76.20 a barrel. Wholesale gasoline prices have declined by 10 percent to $2.19 a gallon.
Analysts were forecasting a nationwide retail average well above $3 a gallon just a few months ago. So what changed?
-- The European debt crisis escalated. This undermined confidence in the strength of the global economic recovery and prompted analysts to lower their energy demand forecasts. The crisis also sent institutional investors flocking to the dollar, a relative safe haven. And, these days, when the dollar goes up, the price of oil goes down.
-- Supplies of gasoline have risen steadily. As of April 30, the U.S. had 225 million barrels of gasoline in storage -- about 5 percent more than a year ago. Output from refineries has been growing at a faster pace than demand.

Hi Member's, I sure hope it's true...Maybe you will be able to take a Trip ?
(Around the Block: ) or maybe even further : )
Sure hope we all get a break ...., I hope that everyone can take a Road Trip in their Monte & have some `fun 4-Sure : )

 

I'll believe it when I see it :P

But I hope to see it!

 

sounds good hahaha

 

I sure as heck don't see it yet. In fact gas went up about $5 cents since last week. we are sitting at about $3.15-3.21 for regular and $3.41 per gallon for premium at the name brand stations.

 

Hi Mods `Mike & Michael,
I sure hope so 2 : ) Here in my area, prices have dropped about 10cents in the last week I hope it's not a false sense of security : ) Maybe, I can have a V-8 lol Chevy Engine/Motor/PowerPLant : )
______________________________________________
additional infor on subject

Oil extends losses to near $76 amid euro concerns

May 12, 2010 - 6:59am <~ this morning


FILE - In this June 9, 2009 file photo, a Chevron customer pumps gas at a dealership in South San Francisco, Calif. Many analysts who predicted that retail gasoline prices would top $3 per gallon for a short time this summer, 2010, now are looking for prices to move lower or at least stabilize heading into the summer driver season. (AP Photo/Paul Sakuma, file)
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By PABLO GORONDI
Associated Press Writer
(AP) - Oil prices fell to near $76 a barrel Wednesday as investors weighed eroding global crude demand against the effects of a fragile euro.
By early afternoon in Europe, benchmark crude for June delivery was down 25 cents to $76.12 a barrel in electronic trading on the New York Mercantile Exchange. The June contract fell 43 cents to settle at $76.37 on Tuesday.
The Paris-based International Energy Agency said in its monthly oil market report that global oil demand was expected to rise less than previously expected in 2010. The IEA cut its forecast by a daily 220,000 barrels, to 86.4 million barrels a day, but still 1.62 million barrels a day higher than last year.
Crude traders have been eyeing the euro after European policymakers unveiled a $1 trillion debt bailout package earlier this week. Commodities priced in dollars, such as oil, become more expensive for investors holding euros as the dollar strengthens.
Oil has fallen from $87.15 a barrel on May 3 as the debt crisis undermined confidence in the euro, which touched a 14-month low of $1.2520 last week. The euro rose slightly, reversing earlier losses, to $1.2672 on Wednesday from $1.2641 on Tuesday.
Crude supplies rose less than expected last week, by 362,000 barrels, the American Petroleum Institute said late Tuesday. Analysts had expected an increase of 1.7 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.
However, inventories of gasoline fell while distillates were little changed, the API said.
Despite the relatively bullish API figures, oil prices were unable to post gains. "This indicates a change of mood on the oil market, suggesting prices will drop further," said a report from Commerzbank analysts in Frankfurt.
The Energy Department's Energy Information Administration is scheduled to announce its supply report _ the market benchmark _ later Wednesday.
In other Nymex trading in June contracts, heating oil was up 1.44 cents to $2.1545 a gallon and gasoline rose 0.33 cent to $2.1985 a gallon. Natural gas gained 1.6 cents to $4.147 per 1,000 cubic feet.
In London, Brent crude was up 49 cents to $80.98 on the ICE futures exchange.
___
Associated Press writer Alex Kennedy in Singapore contributed to this report.

 

 

...x2

 

premium is at like $3.03/gallon here but... I would love for it to lower.

 

It's happening over here. We're at 2.689/gallon for regular right now.

Last week was an interesting week for oil prices. They went from $86/barrel to $75/barrel in a matter of 3 days. Wholesale price for gasoline also went down from about $2.44/gallon to around $2.10/gallon. It was crazy watching that happen. Now wholesale gasoline is around $2.20/gallon, but that's still not too bad.

Over here, we'll probably see gas around $2.50-2.60/gallon at this rate.

 

...Hi Zip, that's great to read, and I hope it happens in the rest of North America....This may be the time to plan a Road Trip....I don't think they will stay down for long, but I sure hope they do....

Member's, `if the price of gas drops in your area, let us know.....
Muscle Car Owner's have 2 `be super `happy 4-Sure...
Those Monster Engine are thirsty
Thanks for your posts/contributions to the MCF `Zip......EnJoy your day/life and your AweSome Monte...