AP says fuel prices have already peaked

  • AP says fuel prices have already peaked

    The Associated Press continues to set consumer expectations that they can expect to pay less at the pump this summer then the summer of 2009.

    Highlights of the article:

    “Prices for heating oil, gasoline and Brent crude all dropped by at least 3 percent. “People are saying it’s time to get out,” said Michael Lynch, president of Strategic Energy & Economic Research. Earlier this year, Lynch stood out from many of his peers by predicting that oil prices would fall. “The market has gotten way ahead of itself,” Lynch said. “People kept saying that soon demand will go up and inventories will go down. But that’s not happening.”

    “Traders started getting nervous as the debt crisis unfolded in Europe. U.S. government data showing that Americans continue to have a relatively weak appetite for fuel have sunk energy prices even further.”

    “If the world doesn’t start sopping up excess supplies, oil prices may fall into the $40-per-barrel range this year, Lynch said.”

    “At the pump, retail gasoline prices dropped 1.2 cents overnight to a new national average of $2.84 a gallon, according to AAA, Wright Express and Oil Price Information Service. A gallon of regular unleaded is 1.9 cents cheaper than it was a month ago, but it’s 50.6 cents more expensive than a year ago. Experts say gas prices have likely peaked already this year, and it should cost less to fill up this summer than in the summer of 2009. That’s good news for the travel industry as Americans get ready to hit the highways over the Memorial Day weekend, the unofficial start of the summer driving season.

    The full AP article can be read here.

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