June 15, 2004


Gasoline Prices May Continue Declining (H. JOSEF HEBERT, 6/15/04, Associated Press)

Gasoline prices, which dipped under $2 a gallon for the first time in weeks, "may be turning a corner" and should continue declining this summer, though motorists shouldn't expect dramatic decreases at the pump, the Energy Department said Tuesday.

Guy Caruso, administrator of the department's Energy Information Administration, told a Senate committee that retail gas prices fell by about three cents a gallon last week on a national average and that wholesale prices declined by 23 cents a gallon from their peak in mid-May.

These developments "should result in further reductions in retail prices in coming weeks," Caruso told the Senate Energy and Natural Resources Committee. "Absent major disruptions, oil and gasoline markets may be turning a corner."

He said the EIA's analysis recently lowered its forecast for gas prices in June by three cents a gallon and forecast that gasoline prices are expected to continue to fall beyond this month.

Caruso said their appeared to be an "improved balance" between gasoline supply and demand and an expectation in the markets of lower crude oil prices.

It's mid-2004 AD and there are still folks who are surprised when supply and demand affect one another.

Posted by Orrin Judd at June 15, 2004 4:54 PM

Indeed. Gas prices at the "cheapie" stations peaked at $1.93 - $1.95 per gal for regular unleaded last month here in Manassas, VA, but the regular price is down to $1.79 as of today and might come down a few cents more tomorrow (Wednesday being when stations usually adjust their prices here).

Posted by: Joe at June 15, 2004 6:59 PM

Another issue that was going to kill Bush appears to be going away. Not surprising to those, as OJ notes, have a basic understanding of supply and demand.

Posted by: AWW at June 15, 2004 9:42 PM
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