Gas prices ease

The drop appears to be coming off of a small decline in crude prices.

By Kim Peterson Apr 19, 2012 2:44PM
Have gas prices peaked?

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.

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44Comments
Apr 20, 2012 8:03AM
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2008 = $147 oil = $4.50 gas

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.
Apr 20, 2012 2:45AM
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It is overcast outside......oil goes up.

Fish not biting.........oil goes up.

Obama bows for the Saudi King......oil goes up.

Anything and everything is excuse enough it appears.........oil goes up.

Apr 20, 2012 10:21AM
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Back in the late 70;s when we had that oil crisis our GOVM"t created the department of ENERGY to control and prepare for these situations. Starting out with just a few people this agency now employs more than 30'000 people.They aren't doing a very good job not to mention a total waste of Taxpayers money,
Apr 19, 2012 8:57PM
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When it get's below $2.00 then Obama has done something until then it's probably just going to go back up in a few weeks.
Apr 19, 2012 10:02PM
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What a joke.....Tell us when it really goes down, 2c in a month isn't shtt.
Apr 19, 2012 3:52PM
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Don't bet on it.   Big Oil will continue to gouge us at the pump. 
Apr 19, 2012 3:52PM
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We need to regulate them along with the speculators!
Apr 20, 2012 11:19AM
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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.

Apr 19, 2012 9:20PM
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Crap...i just bought a nrw VW Jetta to help the economy...got rid of my my Dodge Ram, and i loved my truck! Make up your damn mind! i know what i did was for the best, but...this economy sux! and it's not turning anytime soon, get ready America.
Apr 19, 2012 8:19PM
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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.

Apr 19, 2012 11:15PM
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The speculators are taking profits... selling off causes the price to drop. Once the price bottoms, they will start buying again... driving the price back up before memorial weekend.
Apr 19, 2012 5:06PM
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Whatever miniscule slow drop that does happen will be more than offset by the typical beginning of summer by Memorial Day increase to $4 plus all over again.

Apr 20, 2012 6:57AM
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It's all Bush's fault.  He's still making money from the oil companies.  It can't be because our present KING has any responsibility the American people.  This is the change everyone was hoping for in 2008.  In Jan,2009 the price of gas was around $1.90 per gallon.  Nice change.
Apr 20, 2012 11:09AM
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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!!!

Apr 20, 2012 7:26AM
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Ive started wondering if the price of crude oil has Anything to do with prices...?

Think Its more about  how much the oil companies want their Record Profits to be...

No matter what crude prices may be,,,They will make record profits !

 thus, driving up cost of living  for ALL Americans...

Apr 20, 2012 2:10AM
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just put a windfall tax on the oil companies like  Nixon did that will fix there wagon HA !
Apr 19, 2012 10:40PM
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Let's hope so. There is no need for prices to be as high as they are now, and certainly no reason for them to go any higher. The current price of gas and oil is high enough to absorb any major impact to the oil market whether its a category 6 hurricane on the Gulf Coast or the mother of all wars in the Middle East, there is no reason for prices to ever reach $5 a gallon or more. The speculators should not control the market, they can't even provide evidence to back thier claims.
Apr 20, 2012 10:57AM
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Peaked? Yeah and I just saw a flying pig!Sarcastic
Apr 19, 2012 8:51PM
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So was there anything that actually happened in Iran that would have affected the price of oil other than speculation based on media reports?
Apr 19, 2012 10:22PM
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PATHETIC!!!!!!!! The people that write this "TIHS" should be fired!!!!! Don't make us think that gas is now cheap and we should bow at the alter of Blowbama!!!!! Until gas is around $1.50 THEN you can write a story!!!!!!!
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