Hello, $3 Gasoline! Hello, Deflation and Economic Slowdown!Submitted by Diamond Dog on Fri, 11/01/2013 - 10:08
With U.S. crude supply near an EIA record, oil and retail gas prices drop
SAN FRANCISCO (MarketWatch) — Crude-oil stockpiles in the U.S. are heading toward a record, pushing off a return to $100-a-barrel oil, and giving drivers a shot at $3-a-gallon gasoline.
“With the overhang of crude supplies building over six weeks, we are unlikely to see $100 oil again very soon,” said Kevin Kerr, president of Kerr Trading International. “This is good news for refiners and ultimately consumers” as it should depress gasoline prices at the pump.
U.S. weekly crude supplies have jumped nearly 8% since mid-September, according to figures from the Energy Information Administration.
At 383.9 million barrels as of the week ended Oct. 25, they’re less than 14 million barrels below the highest level recorded by the EIA. Supplies were at 397.6 million barrels for the week ended May 24, the EIA’s highest weekly level since the agency began collecting data the data in 1978.