Gas prices could head lower for summer

[brooklynite]

Source: MSNBC

The recent run-up in oil and gasoline prices may have run its course - for now.

...snip...

Much of that run-up was fueled by fears of a cutoff in supplies from Iran, which is the target of U.S. and European sanctions aimed at curbing its nuclear weapons program. Those sanctions have been applied in stages since the start of the year.

But traders may have overreacted to the potential impact of those sanctions, according to Julian Jessop, chief global economist at Capital Economics.

"We expect any remaining Iran premium in prices to evaporate soon," he said. "Even if sanctions continue to tighten there is ample evidence that the countries most affected have already been able to find alternative supplies, while Iran is actually having to cut prices in order to sell its oil elsewhere."

Read more: http://economywatch.msnbc.msn.com/_news/2012/04/13/11182024-gas-prices-could-head-lower-for-summer?lite

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Boy, Romney can't catch a break anywhere....

[Andy823]

1. But they will still probably be higher than last year.

GREED is a terrible thing, and I am sure that the higher prices we have been paying more than made up for the money big oil lost because of a mild winter. The key word in this article is "could". There is no guarantee they will drop or how far they will drop, or when they will drop. Like in 2008 the oil companies, and the speculators, are going to try and increase their profits. They have already closed down refineries in order to justify raising prices, and all the hype about Iran seems to not be working since we have surplus's of oil.

I am sure they will be making more this year than last year, somehow!

[zbdent]

2. so ... despite all the "liberally-biased media" hyping the 2008 run-up as "out of the President's

control" but still letting the GOP blame it on Obama ...

will the Republicans thus give the credit to Obama for getting the prices lowered? Or will they suddenly "come to their senses" about the lack of control a President has over the gas prices?

[NickB79]

3. Maybe yes, maybe no

Assuming tensions don't flare further with Iran, and there is no closing of the Strait of Hormuz, then prices should decline a bit. However, there is now the potential for war in Sudan/South Sudan which could disrupt oil exports, as well as the continuing attacks by Boko Horam (sp?) in Nigeria. A bad hurricane season in the Gulf of Mexico could also have disruptive effects on oil supplies.

Basically, we're reaching the end of the era of cheap, easily accessible oil, which leaves us vulnerable to wild price swings from comparatively small global events.

[Cirque du So-What]

4. Price jumped $0.15 overnight in my locale

I noticed that the price dropped by a similar amount this last time around, coincidentally with an announcement by Obama and Sarkozy that they were considering the possibility of releasing some of the crude oil currently being held in strategic reserves. Perhaps a stronger noodge in that direction would be all it takes to spook the speculators to the point that they start selling, which could snowball into a massive selloff.

[Purveyor]

13. Mid-Michigan prices jumped .35 just this morning. eom

[Psephos]

15. Largely due to switchover from winter blend to summer blend.

Happens every Spring.

Summer blend is more expensive to refine because it contains extra oxidizing agents and a different hydrocarbon mix to fight pollution.

I'm sure there's a lil' extra markup in there, too, 'cuz why not tack it on if the price is already rising anyway?

[AlbertCat]

5. "EVERY TIME I FILL UP, I CURSE OBAMA"

That was a bumper sticker I saw the other day.

Does anyone even know what that means?



.... besides "I'm a bigoted moron who thinks the president of the United States controls gas prices"

[GoddessOfGuinness]

6. If gas prices were going down, he'd still curse Obama...

...because that's the agenda of hate that is the rethuglicans' last bastion of hope.

[pedex]

7. no but the official policy

of currency devaluation and propping up insolvent banks does indeed force energy prices upwards

[dipsydoodle]

8. Oh goody - you'll be able to use even more

[Throd]

9. Oh goody, I'll have a little more money at the end of the month.

[Earth_First]

10. Doesn't this contradict the age old price increase adage?

'Summer fuel deliver is more expensive due to refinement requirements for cleaner burning fuels in the hotter, summetime months...'

Now it can be cheaper AND meet emission standards?

Must be an election year...

[discntnt_irny_srcsm]

11. According to...

...basic chemistry, hotter air is less dense which would slightly lower the mixture density prior to ignition. This would result in slightly lower octane requirements, therefore slightly less refinement.

[Jackpine Radical]

12. Why would the oil cos. drop prices in an election year

when a Democrat would benefit?

[Dawson Leery]

14. If so, this is one more issue taken away from Mittens.