Gas prices ease
The drop appears to be coming off of a small decline in crude prices.
Pump prices are just starting to drop, averaging $3.891 a gallon nationwide Thursday. That's down slightly from $3.899 Wednesday and from $3.907 a week ago. Gasoline futures have dropped for four days in a row, ABC News reports, falling more than 6% from their high late last month.
Is this drop in response to President Barack Obama's new proposal to crack down on oil market manipulation? Not at all.
Post continues below.
More likely, prices are following the action in oil, which fell to an eight-week trading low in April on expectations that U.S. supplies are rising, Bloomberg reports. The price of Crude (-CL) for May delivery fell slightly Thursday to $102.25 a barrel. The price for June delivery also fell to $102.70 a barrel.
Crude has been dropping for several reasons. Investors are relieved that Iran seems to be positively approaching talks over its nuclear program. Also, there are signs that global supply is outpacing demand, The Associated Press reports. Saudi Arabia is seeing more output, while Chinese growth is slowing. Finally, demand is weakening in other countries.
We may be seeing a mini-peak in gas prices. It usually takes a few weeks for pump prices to reflect the action in oil, so prices could drop a little more. But talks with Iran can turn on a dime and send oil prices skyward. And we're just heading into the late spring and summer driving season -- traditionally a high period for gas prices.
The White House is watching carefully, as some of Obama's re-election chances are tied directly to what's happening at the pump. Still, Obama's approval rating rose slightly in March even as gas prices rocketed, Bloomberg reports.
More from MSN Money
- Best bets for the next move up in gold
- Ikea's new TV line: Brilliant or boneheaded?
- Verizon posts a great quarter
MORE ON MSN MONEY
VIDEO ON MSN MONEY
2012 = $100 oil = $4.50 gas
Tell me again how oil prices drive the cost of gasoline. This is about the middle men (refiners and wholesale distributors) deciding they need more profit.
"Stick it to the little man and they will blame it on the speculators while we walk away unscathed with a pocket full of money." Speculation is just a small piece of a bigger puzzle.
Gas prices were too high once it went over 50 cents a gallon!
Why are we subsidising corporate companies with research money?
They make 30-40 BILLION dollars PROFIT per QUARTER!
that translates into 120-160 BILLION dollar PROFIT every YEAR
Really, they need a subsidy? They need to pay for their own research, cause they certainly aren't give the American people a 'break' in the price.
Stop Oil Company Subsidies TODAY -
Demand an accounting of price fixing by oil companys and sue them into bankruptcy.
And once again, MSN proves that it's writers/journalists have absolutely no idea what they're talking about. Where'd this one come from, MSN? Door greeter at the local Walmart?
The only thing in this article that makes sense is that Obama's ratings and chances of re-election are tied directly to prices at the pump. If his ratings take a dive, then prices will drop, but don't look for any significant drop.
GOP members of Congress are in bed with big oil! Time to regulate the oil companies, the speculators. Term limits for the corrupt Congress.
Exxon Ceo makes $35 million .........what an outrage?
Gas should be costing all of us about $1.50 gallon. Overseas events have nothing to do with big oil's hold on our economy. Restrict supply and price gouge the American public is Big Oil's modus operandi!!!
DATA PROVIDERS
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
Japanese stock price data provided by Nomura Research Institute Ltd.; quotes delayed 20 minutes. Canadian fund data provided by CANNEX Financial Exchanges Ltd.
RECENT QUOTES
WATCHLIST
MARKET UPDATE
| NAME | LAST | CHANGE | % CHANGE | |
|---|---|---|---|---|
| There’s a problem getting this information right now. Please try again later. | ||||
[BRIEFING.COM] The S&P 500 hovers near the middle of its range as Fed Chairman Ben Bernanke continues his testimony before the Joint Economic Committee.
All ten sectors trade in the black, but only health care and financials have been able to register gains of at least 1.0%. Today's top performing group, health care, is once again receiving some support from biotech as the iShares Nasdaq Biotechnology ETF (IBB 184.94, +3.40) trades with a gain of 1.9%. ... More
More Market News
Currencies
| NAME | LAST | CHANGE | % CHANGE |
|---|---|---|---|
| There’s a problem getting this information right now. Please try again later. | |||
