Crude, Gasoline Prices Dive
Retail margin soars (momentarily), says Lundberg
CAMARILLO, Calif. -- During the past two weeks, the U.S. average retail price of regular grade fell a hefty 12.23 cents per gallon, according to the most recent Lundberg Survey of approximately 2,500 U.S. gas stations; however, the U.S. average wholesale price (weighted for class of trade) plummeted 28.01 cents, Lundberg found.
The cuts come from crude, crashing more than $7 per barrel over the same period with most of it hitting during the past two trading days. Crude is running scared as European economies are threatened and global petroleum demand destruction is possible. If the oil price does not bounce back up very soon, then the more price cutting will arrive on the street.
Retailers have a momentary boom, on average, with margin expanding by 16 cents to a stellar level of nearly 28 cents. Unfortunately, they will likely be giving it up before it can bring much joy.
Assuming oil price stability, there is at least another dime decline on its way to the retail pump--mostly from what crude oil has done, but influenced too by continued economic damage to gasoline demand.
Camarillo, Calif.-based Lundberg Survey Inc. is an independent market research company specializing in the U.S. petroleum marketing and related industries.
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