Today’s market slid over 13-cents per gallon on positive news coming out of China: they’re finally lowering subsidies on oil and fuel products.
The market immediately turned south after realizing that one of the biggest developing nations was now passing on higher prices to its consumers. This has the potential to turn the whole market around as traders finally realize that sustained oil and gasoline prices at these levels will kill off demand, even in developing countries that rely on it.
With the added news that the Saudi’s are increasing oil production, the market may correct… however, I doubt any correction to bring prices down more than $1 as oil stockpiles are tens of millions of barrels lower than last year, and oil inventories remain much below average.
We still may be poised for a mid-to-late summer decline, as long as Hurricane season stays in check.
For now, wait to fill up. Prices should moderate through the weekend, with potential of $3.95’s coming out within the next 5-7 days. We also may be poised for a jump in the market tomorrow. It’ll either be a small jump or another significant decline.
Patrick
The market has been up pretty big all day, so we should lose most of what we gained last night. Who knows if stations will be smart enough not to drop retail prices this weekend based on the big wholesale drop last night.
It looks like Congress might be willing to make a REAL effort to stop speculating: http://nacsconnect365.bdmetrics.com/NST-1-50057431/story.aspx?utm_source=nacsconnect365&utm_medium=email&utm_campaign=enewsletter&ocuid=NTcxNjg1Mg==-NMdOYUI58ZE=
EVERYONE knows that gas prices goes up towards the weekend AND just before the holiday time…notice just before July 4th, they will go up.
Also, I would like to know why noone is questioning the govenment about the part that was make with the carborator part that got over 100 mile per gallons.
The oil companies dont want this to happen that is why they bought this part so we would have to keep on purchasing their gas. The government is also behind this and working with the oil companies.
There are reports about this. However, noone wants to investigate into this.
I think that reporters are feared to do this.
You cannot tell me that in this day and age that not ONE person has come up with an invention car part to make you get more miles for your money. (they did, but again, oil companies, government and General Motors) dont want you to have this, so it is a BIG cover up.
Why don’t someone look into this further??
Why do we have to be at their mercy??!!??