Gas prices expected to drop 50 cents by summer

[Chris]

NEW YORK – Some relief from suffocating gas prices will likely arrive just in time for summer vacation. Expect a drop of nearly 50 cents as early as June, analysts say.

After rocketing up 91 cents since January, including 44 straight days of increases, the national average this past week stopped just shy of $4 a gallon and has retreated to under $3.98. A steady decline is expected to follow.

It might not be enough to evoke cheers from people who recall gas stations charging less than $3 a gallon last year. But it would still ease the burden on drivers. And it might help lift consumer spending, which powers about 70 percent of the economy. A 50-cent drop in prices would save U.S. drivers about $189 million a day.

Gas prices expected to drop 50 cents by summer - Yahoo! News

 

[slukasiewski]

Are we to get on our knees and hail King Obama?

 

[Quantum Windbag]

NEW YORK – Some relief from suffocating gas prices will likely arrive just in time for summer vacation. Expect a drop of nearly 50 cents as early as June, analysts say.

After rocketing up 91 cents since January, including 44 straight days of increases, the national average this past week stopped just shy of $4 a gallon and has retreated to under $3.98. A steady decline is expected to follow.

It might not be enough to evoke cheers from people who recall gas stations charging less than $3 a gallon last year. But it would still ease the burden on drivers. And it might help lift consumer spending, which powers about 70 percent of the economy. A 50-cent drop in prices would save U.S. drivers about $189 million a day.

Gas prices expected to drop 50 cents by summer - Yahoo! News

Go up a dollar, come down 50 cents. Why should people be happy about a $.50 increase in gas prices?

 

[Baruch Menachem]

Based on what?

 

[Toro]

Based on what?

Crude fell $10 in one day.

Obama's polling numbers have tracked the rising price of gas over the past two months. We'll see if it continues.

 

[Paulie]

"Prices will be $6 by summer"

"prices will be 50 cents cheaper by summer"

"prices will be $5 by summer"

What the fuck? The truth is no one knows a FUCK about what prices will be. But I'll be surprised if they drop 50 cents by summer. I just don't see anything driving that much of a price decline in such a short time. Profit taking on the oil markets certainly isn't going to bring it down that much, and I don't see the Federal Reserve extinguishing money from the system, so what would make a commodity price drop so much so soon right now?

Short of major increases in production by OPEC, there's nothing.

 

[masquerade]

I do hope these so-called analysts are correct in their predictions/assumptions because I filled up my tank about and hour ago and it wasn't pretty! $62.00 later, here I am.
Last week I was lucky enough to have my gas last the entire work week. Granted, I told my son he couldn't take my car out unless it was to work and back, so that helped a bit. Errands come in bunches these days.

 

[LordBrownTrout]

I'll be more surprised if they fall 50 cents than if they rise by 50 cents.

 

[Baruch Menachem]

Maybe at $4 we start seeing a lot of demand elasticity. I have been keeping my driving as short as possible lately.

 

[Paulie]

I'll be more surprised if they fall 50 cents than if they rise by 50 cents.

Exactly.

The Federal Reserve has created unprecedented amounts of money since 2008, and that's what has commodities this high. It's going to take significant extinguishment of money to cause any kind of meaningful decline in prices.

How quickly everyone forgets that when commodity prices dropped after the 2008 crash, it was because of such a huge decrease in the money supply.

There's more money chasing steady or declining goods now since the Fed pumped in so much liquidity, and that causes price increases. We need to see the inverse of that before we see prices drop significantly.

 

[JimH52]

A drop in gas prices would help the economy. But it is hard to see that happening. I hope they are right.

 

[slukasiewski]

If they're going to drop 50-cents by summer, at the rate of what we're paying now, that means a gallon of gas will be $7.50

Hail Obama !!!!

 

[Ernie S.]

I do hope these so-called analysts are correct in their predictions/assumptions because I filled up my tank about and hour ago and it wasn't pretty! $62.00 later, here I am.
Last week I was lucky enough to have my gas last the entire work week. Granted, I told my son he couldn't take my car out unless it was to work and back, so that helped a bit. Errands come in bunches these days.

I put $20 in yesterday. IN THE HARLEY! 5 gallon tank. Good for another 160 miles or so.

 

[JimH52]

I found this article that gives good reasoning:

Oil prices fall, one speculator cashes in - May. 6, 2011

 

[Toro]

"Prices will be $6 by summer"

"prices will be 50 cents cheaper by summer"

"prices will be $5 by summer"

What the fuck? The truth is no one knows a FUCK about what prices will be. But I'll be surprised if they drop 50 cents by summer. I just don't see anything driving that much of a price decline in such a short time. Profit taking on the oil markets certainly isn't going to bring it down that much, and I don't see the Federal Reserve extinguishing money from the system, so what would make a commodity price drop so much so soon right now?

Short of major increases in production by OPEC, there's nothing.

The price of WTI went from less than $90 to ~$105 in two days after it became evident that civil war was on in Libya. It then drifted up to $113 over the next several weeks. Most estimates I've seen put a risk premium of $15-$20 into the price of oil, at least before this week.

Gas at the pump meanwhile rose from ~$3.20 to ~$3.80. So if the risk premium is coming out and if the economy is slowing, it is very reasonable to expect oil to fall back to near $3. If however war flares again and the economy picks up, oil prices will remain high.

 

[Oddball]

NEW YORK – Some relief from suffocating gas prices will likely arrive just in time for summer vacation. Expect a drop of nearly 50 cents as early as June, analysts say.

After rocketing up 91 cents since January, including 44 straight days of increases, the national average this past week stopped just shy of $4 a gallon and has retreated to under $3.98. A steady decline is expected to follow.

It might not be enough to evoke cheers from people who recall gas stations charging less than $3 a gallon last year. But it would still ease the burden on drivers. And it might help lift consumer spending, which powers about 70 percent of the economy. A 50-cent drop in prices would save U.S. drivers about $189 million a day.

Gas prices expected to drop 50 cents by summer - Yahoo! News

Gasoline was under $2.00/gal when your exhaled Boiking took office, Monica.

Good God, are you one shameless hack DNC flag pole smoker, or what?

 

[Toro]

NEW YORK – Some relief from suffocating gas prices will likely arrive just in time for summer vacation. Expect a drop of nearly 50 cents as early as June, analysts say.

After rocketing up 91 cents since January, including 44 straight days of increases, the national average this past week stopped just shy of $4 a gallon and has retreated to under $3.98. A steady decline is expected to follow.

It might not be enough to evoke cheers from people who recall gas stations charging less than $3 a gallon last year. But it would still ease the burden on drivers. And it might help lift consumer spending, which powers about 70 percent of the economy. A 50-cent drop in prices would save U.S. drivers about $189 million a day.

Gas prices expected to drop 50 cents by summer - Yahoo! News

Gasoline was under $2.00/gal when your exhaled Boiking took office, Monica.

Good God, are you one shameless hack DNC flag pole smoker, or what?

That's because we were in the depths of the financial crisis. I can't imagine anyone wanting to replay that again.

 

[whitehall]

You gotta admire lefties in a way. When the economy is going down the drain and they can't offer any solution they merely invent one. If you add the word "expected" you can give any scenario and expect you to believe it.

 

[Oddball]

NEW YORK – Some relief from suffocating gas prices will likely arrive just in time for summer vacation. Expect a drop of nearly 50 cents as early as June, analysts say.

After rocketing up 91 cents since January, including 44 straight days of increases, the national average this past week stopped just shy of $4 a gallon and has retreated to under $3.98. A steady decline is expected to follow.

It might not be enough to evoke cheers from people who recall gas stations charging less than $3 a gallon last year. But it would still ease the burden on drivers. And it might help lift consumer spending, which powers about 70 percent of the economy. A 50-cent drop in prices would save U.S. drivers about $189 million a day.

Gas prices expected to drop 50 cents by summer - Yahoo! News

Gasoline was under $2.00/gal when your exhaled Boiking took office, Monica.

Good God, are you one shameless hack DNC flag pole smoker, or what?

That's because we were in the depths of the financial crisis. I can't imagine anyone wanting to replay that again.

Yeah, and prices were seeking their own levels again...Which is something that the control freaks and Wizards of Smart in the District of Criminals and at the Fed just won't stand for.

 

[bigrebnc1775]

NEW YORK – Some relief from suffocating gas prices will likely arrive just in time for summer vacation. Expect a drop of nearly 50 cents as early as June, analysts say.

After rocketing up 91 cents since January, including 44 straight days of increases, the national average this past week stopped just shy of $4 a gallon and has retreated to under $3.98. A steady decline is expected to follow.

It might not be enough to evoke cheers from people who recall gas stations charging less than $3 a gallon last year. But it would still ease the burden on drivers. And it might help lift consumer spending, which powers about 70 percent of the economy. A 50-cent drop in prices would save U.S. drivers about $189 million a day.

Gas prices expected to drop 50 cents by summer - Yahoo! News

Is this like the unexpected rise in unemployment numbers we keep hearing about month after month after month?