"Gasoline could drop 50 cents/gallon by spring.
NEW YORK (Reuters) - U.S. drivers could enjoy a drop of up to 50 cents per gallon in gasoline prices by this spring as high fuel prices and the threat of a recession force them to conserve, experts said on Wednesday.
U.S. gasoline supplies hit a near-14-year high of 227.5 million barrels last week, helped by falling demand for the fuel, the U.S. Energy Information Administration said on Wednesday.
"Gasoline stocks are continuing to increase and it implies that people are probably cutting down on gasoline consumption -- a result of the weakening economy," said Phil Flynn, an analyst at Alaron Trading in Chicago.
"U.S. gasoline demand over the last four weeks only averaged about 1 percent more than the same period last year, the EIA said. Demand growth for the fuel has typically averaged about 1.5 to 2 percent a year and has been one of the major drivers of global oil markets.
"Something dramatic is occurring with consumer driving habits," Geoff Sundstrom, a spokesman for AAA motor club, said in a telephone interview. "These numbers, if sustained over next couple of weeks, should set the stage for a reversal of price forecasts."
He said U.S. gasoline prices in the spring could fall 50 cents a gallon from Wednesday's $2.98.
Spring gasoline prices in the world's largest energy consumer set the stage for fuel prices during the summer months when vacationers drive fuel demand to annual peaks."
I think it will happen, and is a necessary but not sufficient incrediant w/r to the possibility that the SPX and DOW hold the Maginot line.
I do not believe there is any possibility the bull market can continue later this year, unless there is a significant IT correction in commodities. Just does not add up. Of course most would probably say the bull market over in any event.
May I quit burning wood now? Burning wood is good for making more wood you know. Increases green house emissions, influences temperature warming, and ultimately increases plant/tree growth. Kind of like shave them thar whiskers to grow more and better whiskers, no? I am no longer so young, the three morning S's (the one S okay) are now old news ... so I wish them thar whiskers would disappear more or less. That one morning S is a real bore, but the alternative worse.
And DUG continues to strengthen here.
There is DUG and then there once upon a time was Dugout Doug. No connection.
My God, not only is everyone in their bunker, but I think the roof on the bunkers have all collapsed. Oy Oy.
TF |
