Drivers Could See Lower Gas Costs Soon
Rabu, 10 Agustus 2011 by Android Blackberry
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| Gas Costs Soon |
Drivers Could See Lower Gas Costs Soon
oil prices, crude oil, oil prices today, price of oil, oil price
Drivers could soon see lower costs in the gas pump thanks to uncertainty over the economy.
Crude oil futures have dropped to their lowest levels in 8 months, closing at $79 a barrel on Tuesday.
AAA of the Mid-Atlantic says that could mean drivers will pay about $3.00 to $3.25 for normal unleaded gasoline in just a number of weeks.
Dr. Pam Drake at James Madison University explains that the cost of oil futures may be a prediction by investors on how the economy will look in many months.
She says it all comes down to supply and demand and using the current economic trouble inside the nation along with the rest of the globe, fears over the state of the economy could slow productivity and bring down the demand.
"It does tell us that correct now, people today do anticipate the economy to slow. It doesn't mean it's going to happen. It just means that expectations right now are that we will have some slowing going down within the near term - inside the subsequent few months," stated Drake.
Drake also stated lower gas rates won't be noticed right away. She estimates that relief will come in two months because a drop in oil costs commonly precedes any decreases in gas rates.
Any relief is great news for drivers like Roy Givens of Paducah, Kentucky.
Givens was driving by way of the Valley on Wednesday on his solution to obtain therapy for Stage 4 Melanoma in the National Cancer Institute in Bethesda.
Gas rates have hit his wallet over the past various years as he travels hundreds of miles a week to get therapy.
"It does get high-priced. You figure a typical individual drives likely 200 to 300 miles per week. I go to the cancer center in Louisville and it's a 5 hour drive from my residence, so that's easily 250 bucks in gas," Givens stated.
Givens welcomes the concept of lower gas rates, but says he doesn't have a great deal of a choice with regards to pain at the pump.
"It's do it or give up. It is not a tough option to create since I program on living. I've got kids I'd like to see grow older," Givens said.
oil prices, crude oil, oil prices today, price of oil, oil price
Drivers could soon see lower costs in the gas pump thanks to uncertainty over the economy.
Crude oil futures have dropped to their lowest levels in 8 months, closing at $79 a barrel on Tuesday.
AAA of the Mid-Atlantic says that could mean drivers will pay about $3.00 to $3.25 for normal unleaded gasoline in just a number of weeks.
Dr. Pam Drake at James Madison University explains that the cost of oil futures may be a prediction by investors on how the economy will look in many months.
She says it all comes down to supply and demand and using the current economic trouble inside the nation along with the rest of the globe, fears over the state of the economy could slow productivity and bring down the demand.
"It does tell us that correct now, people today do anticipate the economy to slow. It doesn't mean it's going to happen. It just means that expectations right now are that we will have some slowing going down within the near term - inside the subsequent few months," stated Drake.
Drake also stated lower gas rates won't be noticed right away. She estimates that relief will come in two months because a drop in oil costs commonly precedes any decreases in gas rates.
Any relief is great news for drivers like Roy Givens of Paducah, Kentucky.
Givens was driving by way of the Valley on Wednesday on his solution to obtain therapy for Stage 4 Melanoma in the National Cancer Institute in Bethesda.
Gas rates have hit his wallet over the past various years as he travels hundreds of miles a week to get therapy.
"It does get high-priced. You figure a typical individual drives likely 200 to 300 miles per week. I go to the cancer center in Louisville and it's a 5 hour drive from my residence, so that's easily 250 bucks in gas," Givens stated.
Givens welcomes the concept of lower gas rates, but says he doesn't have a great deal of a choice with regards to pain at the pump.
"It's do it or give up. It is not a tough option to create since I program on living. I've got kids I'd like to see grow older," Givens said.
Volatile was the single best way to describe the activity on Tuesday and fairly significantly this entire week so far. On leading of the massive relief rally that got underway soon after the US Fed announced that they were going to leave short term interest rates near zero for the next two years, the API released their weekly inventory report (see below for more details) that showed an really big decline in crude oil stocks as well as modest declines in refined item inventories. Simply a bullish fundamental snapshot. That sent oil costs off to the races since oil was unable to obtain into the positive territory during the Bernanke relief rally. Oil traded in over a $7/bbl trading range on Tuesday with rates up nicely over three.5% so far right now. As of the moment I would categorize the rally in oil (and also the gains in just about everything since yesterday afternoon) as nonetheless a brief covering rally as the concerns over the slowing global economy has not changed all that a lot over the last 24 hours.
What has changed is that the Europeans continue to buy the debt of the weak EU member countries like Italy and Spain and the US Federal reserve assured the marketplace that it is going to keep interest rates low for years not month. The Fed pledge is viewed as another way of driving money into the risk asset markets as participants appear for yields. At least because yesterday afternoon that logic has worked as funds seemed to move into the equity and commodity marketplace in conjunction using the shorts heading towards the sidelines. The bad news out of the FOMC meeting will be the fact that the Fed said the US economy is growing considerably slower than expected. So yes capital may likely continue to flow into equities which ought to be supportive for oil prices but the underlying truth that the US economy, at the same time as most other economies about the globe, is growing at a snail's pace and is nonetheless troubling and clouding a sustained rally in the moment.
As shown within the following table of the EMI Global Equity Index all ten bourses inside the Index have participated inside the relief or short covering rally due to the fact yesterday afternoon. On the other hand, the Index is still showing a loss of two.5% for the week even though the year to date loss for the Index is close to 18%. All ten bourses are still in negative territory with the US nonetheless the leader of the pack with the smallest year to date loss. Even with all of the negativity surrounding the US economy of late from an equity investment point of view it truly is nonetheless the optimum location to invest compared to any other industry shown in the Index. Seven of the ten bourses in the Index are nonetheless showing double digit losses with both China and Canada on the cusp of going into double digit territory also. Perfect now I would categorize the markets as getting driven by those trying to find yields with lots of eyes focused on the equity markets. Whether or not the market rout has ended is still a bit unclear as the markets will speedily be turning away from the actions of the ECB as well as the US Fed and as soon as once again starting to focus on the subsequent round of macroeconomic data. A bumpy ride is nonetheless expected in equities and therefore also in the oil and broader commodity complex
What has changed is that the Europeans continue to buy the debt of the weak EU member countries like Italy and Spain and the US Federal reserve assured the marketplace that it is going to keep interest rates low for years not month. The Fed pledge is viewed as another way of driving money into the risk asset markets as participants appear for yields. At least because yesterday afternoon that logic has worked as funds seemed to move into the equity and commodity marketplace in conjunction using the shorts heading towards the sidelines. The bad news out of the FOMC meeting will be the fact that the Fed said the US economy is growing considerably slower than expected. So yes capital may likely continue to flow into equities which ought to be supportive for oil prices but the underlying truth that the US economy, at the same time as most other economies about the globe, is growing at a snail's pace and is nonetheless troubling and clouding a sustained rally in the moment.
As shown within the following table of the EMI Global Equity Index all ten bourses inside the Index have participated inside the relief or short covering rally due to the fact yesterday afternoon. On the other hand, the Index is still showing a loss of two.5% for the week even though the year to date loss for the Index is close to 18%. All ten bourses are still in negative territory with the US nonetheless the leader of the pack with the smallest year to date loss. Even with all of the negativity surrounding the US economy of late from an equity investment point of view it truly is nonetheless the optimum location to invest compared to any other industry shown in the Index. Seven of the ten bourses in the Index are nonetheless showing double digit losses with both China and Canada on the cusp of going into double digit territory also. Perfect now I would categorize the markets as getting driven by those trying to find yields with lots of eyes focused on the equity markets. Whether or not the market rout has ended is still a bit unclear as the markets will speedily be turning away from the actions of the ECB as well as the US Fed and as soon as once again starting to focus on the subsequent round of macroeconomic data. A bumpy ride is nonetheless expected in equities and therefore also in the oil and broader commodity complex
