Gasoline Price Headed Under $2.00?

Myra Saefong reports:

 U.S. government data show crude-oil inventories at a record high of 458.5 million barrels, crude prices have fallen more than 14% year to date, and a recent strike among refinery workers ended in early March.

“That crude oil needs to be turned into something — and that will be refined products,” said Denton Cinquegrana, chief oil analyst at the Oil Price Information Service. “Right now, refining margins are ample enough to motivate refiners to run. Those that are running right now are going to be able to take advantage.”...

Nationally, gasoline supplies reached a 25-year high on Feb. 13, he said, citing EIA figures. [Brian Milne, energy editor and product manager at Schneider Electric] expects crude prices to fall another $10 a barrel or so before moving higher again — which may take gasoline prices down by 25 cents, possibly in the second quarter.

Cinquegrana sees a peak for U.S. retail prices sometime between Tax day and May 1.

Retailers should not put the 1’s for the price placards away, he said. “The last 100 days of the year will see the national average move back [down] toward $2 a gallon —and probably spend some time below it.”

As of Thursday, the average price for a gallon of regular gasoline stood at $2.425, according to AAA’s Daily Fuel Gauge Report.

 -RW