Posted in: Gas Prices,
by Patrick DeHaan on Oct 30, 2009 02:17 PM
Consumers may soon see prices easing at the pump as wholesale oil and gasoline prices push lower after concerns of consumer spending dampen thoughts of an economic rebound.
At this writing, oil is trading lower to $77.14 while wholesale gasoline falls nearly eight cents per gallon to $1.94. Oil had traded as high as $82 just several days ago while wholesale gasoline neared $2.10.
Consensus from yours truly is that a positive DOE report this Wednesday finally kicked some sense into belief that demand would rise as the U.S. rockets towards a shining recovery. We got some news to push oil prices back down today as well- reports have caused some concern for consumer spending as the world's largest economy heads towards its peak season- the holidays.
Overall, the dollar has also regained some strength and so we see the virtual "tug-of-war" being pulled lower by most recent data. While wholesale gasoline prices decline, prices at pumps across the nation continue to rise according to our GasBuddy data. Today we show the national average at $2.686, up from $2.505 a year ago. The rise is slowing however, as gasoline prices have increased a measly two cents in the last week. Canadian prices have kept climbing, rising to 103.5c/L, up from 102c/L a year ago, and up from 100.4c/L last week.
Motorists can expect a break from the recent rise in prices in the coming weeks as refiners complete maintenance and increase output, causing wholesale prices to fall. I expect prices to slowly fall towards mid/late November before rising towards the holidays.