Ulrich
05-16-2010, 10:15 PM
Pump prices may take a holiday this summer
Experts say we could get a break for Memorial Day
By VICKI VAUGHAN
San Antonio Express-News
May 15, 2010, 7:05PM
The traditional start to the summer driving season — the Memorial Day holiday weekend — is coming soon, and that always means higher prices at the pump.
Or does it?
This month, experts say, motorists likely will get a reprieve from spending more for fuel as the holiday rolls around.
“You will see prices go down between now and Memorial Day,” said Ben Brockwell of the Oil Price Information Service, which surveys prices for AAA. “We think that prices have peaked and gasoline's best days are already on the books.”
The reasons why gas prices won't escalate can be found as far away as Greece.
Earlier this month, gasoline prices were on a roll, with the Energy Department predicting a nationwide average price of $3 a gallon. But then fears spread that a massive European bailout, starting with Greece, might not stave off a credit crisis on that continent.
Oil prices “melted down,” Brockwell said, falling from $87 a barrel early this month to $71.61 on Friday.
Also, the U.S. is oversupplied with oil and gasoline.
“Supplies are at record levels for both oil and refined gasoline, the highest level in years,” said Dan Ronan, a spokesman for AAA Texas-New Mexico.
The Deepwater Horizon spill in the Gulf of Mexico won't affect fuel prices because the rig had had minimal production, experts said.
Although gasoline might not hit $3 a gallon, many Texas motorists still think it is is too expensive, and they're having a hard time coping with the price of regular unleaded, which was averaging $2.75 a gallon Wednesday.
“I drive a lot less — mostly just to work and back,” said Norma Cobarruvia, who was fueling her sedan in San Antonio. She and her family don't plan a driving trip for Memorial Day. “We'll stay home, and that has a lot to do with gas prices.”
Eric Noriega, gassing up at a Valero station, said his family has had to budget carefully to deal with gas prices. “We aren't making any unnecessary trips,” he said.
Americans' thirst for gasoline isn't bouncing back much, though there are signs the economy is recovering. From Jan. 1 through Friday, demand was up just 0.4 percent, according to Energy Department figures.
“Demand is growing, but you have to compare that to last year, when we were in a recession. So it's pretty flat,” said Brian Milne, energy editor at Telvent DTN, a business information company that specializes in energy.
And there are signs that Americans continue to be cautious spenders.
Though gasoline demand perked up in April — preliminary figures show a 3.5 percent jump, compared with April 2009 — “now we're not seeing the robustness that we saw in April,” Milne said.
The Oil Price Information Service's Brockwell believes the nation's average price will fall shy of $3 a gallon this summer because unemployment is still high.
Should gasoline prices rise, oil companies will make more fuel, he said, but “demand won't be able to keep up with it.”
Houston Chronicle (http://www.chron.com/disp/story.mpl/business/7006321.html)
Experts say we could get a break for Memorial Day
By VICKI VAUGHAN
San Antonio Express-News
May 15, 2010, 7:05PM
The traditional start to the summer driving season — the Memorial Day holiday weekend — is coming soon, and that always means higher prices at the pump.
Or does it?
This month, experts say, motorists likely will get a reprieve from spending more for fuel as the holiday rolls around.
“You will see prices go down between now and Memorial Day,” said Ben Brockwell of the Oil Price Information Service, which surveys prices for AAA. “We think that prices have peaked and gasoline's best days are already on the books.”
The reasons why gas prices won't escalate can be found as far away as Greece.
Earlier this month, gasoline prices were on a roll, with the Energy Department predicting a nationwide average price of $3 a gallon. But then fears spread that a massive European bailout, starting with Greece, might not stave off a credit crisis on that continent.
Oil prices “melted down,” Brockwell said, falling from $87 a barrel early this month to $71.61 on Friday.
Also, the U.S. is oversupplied with oil and gasoline.
“Supplies are at record levels for both oil and refined gasoline, the highest level in years,” said Dan Ronan, a spokesman for AAA Texas-New Mexico.
The Deepwater Horizon spill in the Gulf of Mexico won't affect fuel prices because the rig had had minimal production, experts said.
Although gasoline might not hit $3 a gallon, many Texas motorists still think it is is too expensive, and they're having a hard time coping with the price of regular unleaded, which was averaging $2.75 a gallon Wednesday.
“I drive a lot less — mostly just to work and back,” said Norma Cobarruvia, who was fueling her sedan in San Antonio. She and her family don't plan a driving trip for Memorial Day. “We'll stay home, and that has a lot to do with gas prices.”
Eric Noriega, gassing up at a Valero station, said his family has had to budget carefully to deal with gas prices. “We aren't making any unnecessary trips,” he said.
Americans' thirst for gasoline isn't bouncing back much, though there are signs the economy is recovering. From Jan. 1 through Friday, demand was up just 0.4 percent, according to Energy Department figures.
“Demand is growing, but you have to compare that to last year, when we were in a recession. So it's pretty flat,” said Brian Milne, energy editor at Telvent DTN, a business information company that specializes in energy.
And there are signs that Americans continue to be cautious spenders.
Though gasoline demand perked up in April — preliminary figures show a 3.5 percent jump, compared with April 2009 — “now we're not seeing the robustness that we saw in April,” Milne said.
The Oil Price Information Service's Brockwell believes the nation's average price will fall shy of $3 a gallon this summer because unemployment is still high.
Should gasoline prices rise, oil companies will make more fuel, he said, but “demand won't be able to keep up with it.”
Houston Chronicle (http://www.chron.com/disp/story.mpl/business/7006321.html)