Posted in: Gas Prices,
by Patrick DeHaan on May 16, 2011 11:28 AM
The weekly gasoline outlook for this week, May 16-22, 2011: Gasoline prices starting this week averaging $3.93/gal in the U.S. and 131.1c/L in Canada.
This week will feature falling gasoline prices in a majority of the U.S. and Canada, but prices in Canada will likely be slower to come down. In addition, gasoline prices in the Rocky Mountain region will likely not drop as much as other areas, if at all.
For motorists in the Great Lakes (WI, IL, MI, IN, OH), gasoline prices will likely fall the most as past problems with refineries in that region finally ease and gasoline supply likely builds.
While gasoline futures are currently trading lower, we continue to watch what affect, if any, the Mississippi flooding will have on refinery operations. Ten major refineries sit on the banks of the Mississippi, and those facilities control nearly ten percent of all U.S. refining supply. If even a few of the facilities have problems, prices may move higher in the Gulf region.
I expect that by next Monday, the U.S. national average will drop to $3.88/gallon while prices in Canada will drop to 129.9c/L. Again- some areas of the U.S. will not see prices drop much, while the areas that have been hardest hit drop the most.