http://money.cnn.com/2012/04/26/markets/gas-prices/index.htm?iid=Lead
It was reported earlier in the year that gas prices would hit $5 by summer, yet gas prices have been lowering throughout the month of April and they are likely to further decline during the summer months. This is due to the fact that the price of one of the most common types of gasoline futures has dropped 30 cents. This drop in gas price futures will start to appear at gas stations over the next few weeks. Brent crude oil has been dropping in price due to tensions easing with Iran over its nuclear program.
It was reported earlier in the year that gas prices would hit $5 by summer, yet gas prices have been lowering throughout the month of April and they are likely to further decline during the summer months. This is due to the fact that the price of one of the most common types of gasoline futures has dropped 30 cents. This drop in gas price futures will start to appear at gas stations over the next few weeks. Brent crude oil has been dropping in price due to tensions easing with Iran over its nuclear program.
4 comments:
The relatively peaceful situation in Middle East in the past two months should have some influence on the lower price of oil right now.
I think this won't last too long. With the economic waming up after the recession, the needs for oil are increasing around the world too.
I do agree with Sijia, the relatively peaceful situation in the Middle East is probably contributing to the lower gas prices. However, I do think that gas prices on the decline will also up consumer confidence in the economy, and we may see some more consumption occurring. This may contribute to a slight increase in gas prices, however with the overall economic situation on the rise, this may balance prices out.
It is good news that the price of gas and oil is lowering during the recent moths. However, this is not to say, the energy problem is solved and we don’t need to worry it anymore. I agree that the peaceful oil market is probably only a temporary one. As a result, governments/companies might want invest more money in the R&D and develop sustainable energy resources.
I am hesitant to believe gas prices will continue to decrease. the recent peace with iran may have a more visible affect right now but in general oil being limited will continue to bring problems amonsgt countries and drive prices up and down.
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