Gas Prices Crude Oil Prices
August 7, 2011 by USA Post
Mid-Atlantic AAA reports the national average of regular unleaded gas fell four cents last week to 3.67 and a gallon. In Delaware, the gas fell three cents to 3.70 and, while in southern New Jersey, prices fell four cents to 3.59 y. Gas prices fell more than seven cents to 3.53 per gallon and on the eastern shore of Maryland.
However, after the National Weather Service increased its estimates for the hurricane season above average, AAA is warning that any hurricanes in the Gulf of Mexico could lead to rising prices of oil and gas.
Oil falls 10% – Clear 2011 EARNINGS
Prices at the pump brakes to economic uncertainty swirls
Week : Gas prices stabilized and even dropped a little in some areas this week amid the swirls of economic uncertainty. The national average for regular grade gasoline fell slightly to 3.70 and Friday by a penny last week, up 13 cents from a month ago and 93 cents higher than prices a year ago. Gas prices remain 41 cents below the record of all time and 4.11/gallon set of three summers ago.
On the heels of an agreement to raise U.S. debt ceiling and reduce spending Sunday night, oil prices began the month of August with strong gains. However, the wave of optimism was short-lived and weak ultimately prevailed and negative U.S. economic data expressed concern about the overall strength of the economy and fears of U.S. could fall into recession. For the first half of the U.S. economy grew at the lowest rate since the recession, consumer confidence is at its lowest level in two months and consumers are spending less. After a steady decline until mid-week, crude oil fell nearly 6 percent Thursday after the worst of Wall Street sell-off since early 2009 (up to 512 points), and below 83 a barrel for the first time since September last year, erasing all 2011 gains of raw materials. The fall of fear in stocks and commodities threatens to affect the world economy, particularly the U.S. and Europe as its sovereign debt crises in Italy and Spain. Employment data released this week showed that 117,000 jobs created in July and unemployment easing to 9.1 percent, better than expected news. Crude oil closed Friday at 86.88, and 10 percent in the week.
In its weekly report, the U.S. Energy Information Administration (EIA) data (at first) showed that crude stocks fell 3.6 million barrels, however, 4.5 million barrels coming from the government’s release of the Strategic Reserve Oil (SPR) oil and commercial inventories actually added 1 million barrels to 355 million barrels. The Department of Energy (DOE) has issued an additional 5 million barrels of SPR emergency, bringing the total release to date to 6.77 million barrels (lower than the expected 8.74 million barrels scheduled for two weeks in July). The Energy Department expects the release of the remaining 21.9 million of 30.64 million barrels of SPR in August. Gasoline stocks rose 1.7 million barrels to 215.2 million barrels.
“The turmoil in global financial markets this week as a result of oil drop by and 9 or 10 percent,” said Jana L. Tidwell, Public Affairs Specialist, and AAA Mid-Atlantic. “How such significant reductions affect prices at the pump? Crude oil represents almost 70 percent of a gallon of gas, so gas prices are so closely linked to oil prices. While gas prices rise like a rocket to the operators of petrol stations can cover the cost of fuel is more expensive than buying in the coming days, which in turn fall like a feather, and operators to keep at bay lower prices at the pump to cover the cost of more expensive gas already in the ground. If oil stabilizes or continues to decline, motorists will undoubtedly begin to feel some relief at the pump in the coming weeks.
The Week Ahead : Tropical Storm Emily fizzled in the Caribbean last week, but not before the National Weather Service (NWS) raised the possibility of a stormy hurricane season than usual, 85%, compared with a probability of 65 % in May. NWS officials now say there could be 14 to 19 storms or hurricanes in every rule, an increase of its initial estimate of 12 to 18, which comes as the heart of the peak hurricane season in the next three months. Warmer than normal waters in the Atlantic and fall of the likely return Ni? The conditions that cause favorable winds are pushing hurricane forecasts. In total, seven to 10 hurricanes are later this year, with projections for three to five of them to become major hurricanes – Category 3 to Category 5 with winds of 111 mph or more. Any disruption in refining capacity in the U.S. Gulf coast due to hurricane activity could lead to short-term oil and ultimately the price of gas increases.
PAST THE GAS PRICE AVERAGES
Regular Unleaded Gasoline (* indicates record)
And 86.88 per barrel (from Friday’s close)
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