Is gas headed below $3 a gallon?
The fourth quarter generally brings lower prices at the pump, experts say.
To top it off -- pun fully intended -- oil (-CL) fell to $77.96 a barrel Thursday. Even with the summer driving season on the way, do we dare imagine that gas could drop below $3 a gallon?
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Yes, say two experts interviewed by CNBC. But keep in mind that oil is probably already near its low for the summer. "I think we've reached pretty much the objective that anyone could have foreseen here," said Jeffrey Grossman, the president of BRG Brokerage. "I think we're going to see a market that will probably work its way . . . higher."
But even though oil may bottom out, gas prices could head further south. "I think we'll see a lot of states with sub-$3-a-gallon gasoline in the next few weeks," said Tom Kloza, a co-founder of the Oil Price Information Service.
With two heated presidential campaigns under way, political observers will be watching gas prices headed into November. But the fourth quarter generally brings lower gasoline prices -- a relief for President Barack Obama.
"People will put together all sorts of conspiracy theories to that," Kloza said. "But it has to do with how much easier it is to make that fuel once we get out of the summer."
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Yesterday, I pulled up to get some gas and commented to my husband..."Wow, 3.59/gallon, that's CHEAP!"
And then it struck me...NO IT'S NOT! They want you to think that's cheap...so they inflate the price as high as they think they can get away with,, then drop it halfway back to where it was before so you think you're getting a bargain.
Wake up people...gas won't be "cheap" until it's back down into the $2/gallon range, where it should be.
Funny - I live northwest of Chicago, and I see gasoline going down maybe a penny a week - but don't worry, as usual, the slightest uptick in oil prices will shoot it back up $.40 in a day!
This is one thing I watch pretty closely....the price of oil compared to the price of gas. It was rather funny when oil took a jump late last year and the next day the price of gas jumped also, but when oil went down the price of gas did not change for at least a week. Here is Kansas the price of gas has been rising this past week, we saw an $.08 jump from Tuesday to Wednesday and then another $.06 from Wednesday to Thursday...doesn't make sense.
You can bet the ceo's of the oil companies are raking in the big bucks on this one.
The only reason gasoline isn't that "cheap" now is because the US GASOLINE/OIL COMPANIES want to make MORE RECORD PROFITS, by working their refineries at 100% capacity and not building new ones to handle the increase in vehicles on the road that's happened over the last few years. Vehicles are lasting a lot longer now, are more fuel efficient, and gasoline companies want us to pay as much as they can get away with. Congress won't do anything about it because most, if not all of them are in their back pockets.
I hear all the time about how gas was under $2 a gallon when Bush left office...BULLCHIT! I have yet another source, energyalmanac*ca*gov that states that the US average for gas on 6/19/2006 was $2.999 a gallon...so all you BUSH lovers, eat it! And do a bit more research other than just FAUX News....
It has to drop below $4/gal first. Gas remains over that in Chicago. Stick it to the consumer.
Make record profits for another quarter. Oil need to be removed from the private sector. They have way too much control - and they could care less how much the consumer pays. Any increase the oil companies just pass it on to the comsumer so they can maintain their 10% and higher profit margin.
Oil dropped more than $3 yesterday and today gas is higher at the pump. What a crock.
About time! To perfectly honest...there really is no reason for gas to be above the $2.00 mark. Anything above that reflects too much profit or too much tax.
As for the "experts"...if they were truly experts...they wouldn't be talking about oil and it's business prices and availabilities...they'd actually be IN the oil business!
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- July crude oil retreated into negative territory following inventory data that showed a build of 0.313 mln barrels when a draw of 0.5 mln was anticipated. The energy component dipped to a floor session low of $98.03 per barrel and chopped around below the unchanged line until the release of the FOMC policy directive at 14:00 ET. It then popped to a session high of $98.74 per barrel but ultimately settled 0.2% lower at $98.25 per barrel. Prices fell to a new LoD of $97.57 ... More
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