On April 20, AAA reported that the national average price for regular unleaded gasoline was $2.41 -- the highest so far in 2017. Gas has been pushing persistently higher since November as the post-Trump “reflation trade” increased expectations for stronger economic growth. From a low of near $42 a barrel, West Texas Intermediate crude oil reached above $55 between December and February (chart below).
But weakness in crude prices has developed over the past two months on growing concerns about President Donald Trump’s legislative push, the viability of OPEC’s supply freeze agreement signed late last year (with participation by non-OPEC producers like Russia) and evidence of building supply-demand imbalance with inventories bloated and U.S. shale output ramping up.
The good news for consumers: Some relief could soon be coming to the pump. The bad news for investors: Energy shares look set for a sharp move lower.
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It doesn't sound as good as engines that run on water.
ReplyDeleteIf they would stop adding ethanol I'd be happy.
ReplyDeleteBut if they stop the ethanol we will have to have a Government mandate to eat 10 ears of corn per day.
Deletelong overdue.....long overdue for price drop..
ReplyDeleteDoes anyone else recall when price first started climbing years ago, the excuse given was oil prices had gone past $100.00/barrel? Notice the prices never seem to fall back down in the same amount they jumped up, or anywhere near it? How about the fuel surcharge that stores started building into your prices never went back down as fuel prices did?
ReplyDeleteDo any of you know anyone who has stock in one of these companies. Reason being is, while they have been making record profits for far too many years, they don't pay SQUAT in dividends. It's about time the prices came down. We should be around $1.00, (or less) per gallon.
ReplyDeleteYes Sir.....you are correct
DeleteWe shouldn't be buying oil at all, one bushel of corn or wheat for a barrel of oil. No deal, than let them starve!
ReplyDelete