Gasoline prices won't stop rising through the Memorial Day holiday until finally peaking in June, when they will begin to fall, the federal government said Wednesday.
The Energy Information Administration released its weekly oil price analysis on Wednesday as the cost of gasoline reached nearly $4 per gallon in some parts of the country in the last week.
Gasoline retail prices have been tracking higher for months, with the cost of making a gallon of fuel reaching a 25-year high between February and March, according to the administration.
But that should level out beginning in the summer, as officials forecast gasoline prices lowering with the projected fall in crude oil prices, the "Week in Petroleum" report reads.
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I would like to know how fuel prices are going to come down. If more ethonal is expected to be added above 15, raising it to 20 and ethonal comes from corn, and the central plains are still flooding, no one can plant this season. So how does that factor into lower gas prices? Just doesn't make sense.
ReplyDelete8:19. It's pretty simple math. Whenever oil crosses the profit margin level (currently around $60/bbl) the oil companies open the spigots until the market becomes saturated (oversupplied). When prices start to drop below that breakpoint, they turn them off again. This time, that Mark might be $70-75 / bbl, all depends on the profit margins each oil company has built in to their drilling/distilling and distribution costs.
ReplyDeleteJust ANOTHER Government Controlled Racket !!!!
ReplyDeleteThere have been huge oil blooms located in the Gulf and the refineries are close by. Instead of crazy long distance pipelines they should be drilling there.
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