Wall Street Journal says gas prices to head even lower

  • Wall Street Journal says gas prices to head even lower

    Today the Wall Street Journal reported that US Inventory data predicts gas prices will continue to fall. The article refers to a report that oil and fuel supplies have risen to a record high, pushing gasoline futures to a near six year low.

    US stockpiles of crude oil and refined fuels are at the highest level ever, dating back to 1990. In addition, US consumption of petroleum fell slightly. “Gasoline inventories rose by 8.1 million to 237.2 million barrels, the highest level since February 2011, according to the EIA. Analysts expected an increase of 3.2 million barrels.” Nicole Friedman wrote.

    Both gasoline and diesel futures are now at the lowest levels since 2009. From a fuel price management perspective, declining retail prices will mean decreased revenue, but if history repeats, increased fuels margins. However, during this season when retail fuel volumes are lowest, we will see retail fuel marketers sacrifice margin to gain volume where they can.

     

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