June 21, 2011
While oil has fallen sharply since May, gasoline is down just about 10 percent and it is not likely to drop below $3 any time soon.
Investors have watched West Texas Intermediate crude drop like a rock on the Nymex, down more than 20 percent from its peak of just above $115 to around $93 a barrel Monday. But Brent, which is a better reflection of global oil prices, at about $111, is down just $15 from its high.
“Unfortunately, the most expensive grade of crude determines the price of gasoline,” said Tom Kloza, chief oil analyst at OPIS. “Brent is the most expensive. It represents crude on the water.”
Gasoline prices have dropped to $3.64 a gallon nationally from a peak of $3.98 in mid-May, according to AAA. Diesel prices at the pump have fallen more slowly but are beginning to catch up and are now averaging $3.97 a gallon.
This article was posted: Tuesday, June 21, 2011 at 3:53 am