A BP at 2.99
You might hear it on the evening news tonight. You might already be watching it on your computer. The price of crude oil took a beating today after a worse-than-expected jobs report showed far fewer jobs added to the economy than was expected. Couple that with more people leaving the work force, and its a recipe for disaster.
Oil prices are closing out the week at their lowest levels in months, and motorists all over the country will soon be enjoying falling gasoline prices, if they haven't been already. Even previous problems on the West Coast don't have much weight compared to a significant outlook on the economy like a jobs report. Sure, BP's Cherry Point, WA refinery is back online, but supply tightness lingers. Apparently that doesn't bother the market.
So soak it up motorists- we had expected back in January that summer gasoline prices would be lowest in June, and to welcome this summer month, we're starting off with good news on the gas price front. Don't expect massive drops in prices overnight, but they're coming down the pipeline- at about the same slow pace as crude oil travels down the pipeline- not lightning fast, but slow and steady- because that wins the race (perhaps that saying doesn't pertain to gas prices as well as I wish).
Washington and Oregon stand the most to lose over the upcoming weeks. California will also see prices shed a decent amount. Other areas east of the Rockies will continue to see drops, and in the next two weeks, we could see the national average drop to $3.50/gallon. Already in South Carolina today we see a handful of stations at $2.99. While this certainly won't be a common occurrence, it sure is nice as summer starts to see what Stuart Varney calls the "two handle" to return. Have a great weekend!