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- 06 May
Gas prices predicted to drop
According to an article in Convenience Store Decisions, for the first time since February, the average fuel price for regular gasoline across the US is expected to drop. The author of the article is Brian Milne, Energy Editor for Schneider Electric, and he attributes the prediction to sliding gasoline futures, a drop in secondary wholesale costs, refiners returning units to service after an extensive turnaround season, a higher run rate at U.S. refineries, a continued growth in domestic fuel supply amid the boom in shale oil, and new pipeline capacity to the Gulf Coast.
However, since the US Energy Department announced there will be federal regional gasoline reserves created near New York Harbor and in New England this year in response to the disruption caused by Superstorm Sandy, Mr. Milne wrote that gasoline prices will find “upside pricing support” this summer.
The full article can be found here.
What does it mean to fuel analysts if this prediction proves true? It means retail fuel relief for the first time since February, and an opportunity for fuel retailers to catch up on their retail fuel margins. It means fuels demand possibly beyond the typical seasonal increases we see each summer. And it means some reassurance that if we get hit with another superstorm this year, we’ll be able to make it through without the dramatic impact we saw with Superstorm Sandy in 2012.
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