Gas prices expected to drop by nearly 50 cents for summer

msnbc.com ^ | May 7, 2011 | AP via Huffington post

[frogjerk]

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.

[upsdriver]

Gas prices usually drop after Memorial Day. Enjoy it while you can because the price will go back up this fall.

[Recovering_Democrat]

Hussein can boast "Now you're only paying TWICE as much for gas now!"

[Uncle Ike]

” “Now you’re only paying TWICE as much for gas now!” “

From the ‘Department of Redundancy Dept’.... ;)

[deport]

I’ll believe it when I see it.

---

It will still suck with a $0.50 gal drop but any reduction will help. It is down in the $3.35 to $3.40 range in places in Texas now.

http://www.texasgasprices.com/GasPriceSearch.aspx

[TCH]

50 cents, eh?

Pot + Frog + water + slowly add heat...

The oligarchs in charge are conditioning the unwashed masses to accept high energy costs. Send the ball to the top, then ease off a little, so the peasants will be more receptive to paying three times greater than what they would otherwise pay, had the government not locked up all our natural resources. The ruling elite will never release their chokehold on the American people—until forced to do so at the point of a loaded rifle.

[manic4organic]

I predict a $1 drop in gas prices oh, around October 2012.

[Recovering_Democrat]

Sorry, I meant....

Hussein will boast "Now you're only paying TWICE as much for gas as since I seized power! What a success-- earlier you were paying 2.5 times as much!"

[Rich21IE]

Yea, but the price of hot air goes up with each election cycle.

[calex59]

Prices in CA, at least in my area, are 4.25 for reg unleaded.

[NRG1973]

I’ll believe it when I see it.

Me too!!! Once Congress extends the debt limit, the Federal Reserve Board will begin a new round of quantitative easing. That should be enough to get commodity prices going up again.

[TexasFreeper2009]

I predict a lot of articles about gas prices with the word “unexpected” in them this summer

[NRG1973]

Well, in two weeks it has dropped .20 from 3.99 to 3.79 (got gas last night). However, I think that may have to do with the reformulated gas issue we had here in PA. Due to all the “boutique” gas formulas each state has to combat smog in the summer time, the refineries were playing catch-up and we had some shortages earlier in the month. But a .50 drop in prices would be welcome indeed, although I am not holding my breath.

You are probably correct. After June 1st all summer formulations must be in place and the supply chain is done with winter gasoline (until September). The difficulties of managing two inventories (summer gasd & winter gas) during the spring adds to the price that we pay at the pump.

[stylin19a]

‘cept BP announced a problem at an Illinois refinery...so forget the Midwest seeing a drop...it will probably go up.

I’m expecting a fire at a Texas refinery any day now.

[NRG1973]

I do not think so...summer blends are more expensive.

Yes, but only by 6-8 cents per gallon. That is more than offset in the spring by the cost of the supply chain having to carry two inventories (winter gas and summer gas). Additionally, southern states often have two grades of summer gasoline to manage (one in April & May and another from June to September).

[Second Amendment First]

Here in suburban St Louis the price drop in the last ten days is $.50, from 3.99 to 3.49 this morning. Time to start filling the V-10 beast again.

[NRG1973]

This article just posted on Yahoo Finance.

Stocks turn higher as oil tops $100:
http://finance.yahoo.com/news/Stocks-turn-higher-as-oil-apf-2119523703.html?x=0&sec=topStories&pos=main&asset=&ccode=

[NRG1973]

More good news for oil prices.

Venezuela threatens to interrupt US oil supply:
http://www.csmonitor.com/World/terrorism-security/2011/0525/Venezuela-threatens-to-interrupt-US-oil-supply

[Alberta's Child]

Shouldn't come as a surprise to anyone. Gasoline prices have risen in April and May nearly every year in recent memory. I've speculated that much of the increase can be attributed to short-term supply disruptions and refinery adjustments as the EPA-mandated summer fuel blends are introduced.

I seem to remember posting this same point for at least the last four or five years.

[SoldierDad]

Call me when there is a 50% drop in the price of gas. 50 cents isn’t significant.

[SoldierDad]

Question? Why, if the summer blend is better for the environment, is there any need for a different blend in the other months of the year? I have a noticable increase in fuel efficiency with the summer blend over the winter blend. Having no need for a difference in blends might also drop the price.