Gasoline Prices Continue to Slide

Supply enhanced, Lundberg says

CAMARILLO, Calif. -- As both crude oil and gasoline supplies continued their rise in the past two weeks, retail gasoline prices continued their cuts. Self-serve regular now averages $2.2129, down 3.08 cents since April 22. In the past month, the U.S. average shed 7.5 cents a gallon, according to the most recent Lundberg Survey of approximately 7,000 gas stations in the United States.

With the Organization of Petroleum Exporting Countries (OPEC) pumping its heart out and some pre-summer domestic [image-nocss] refinery maintenance projects complete, with gasoline imports also coming in strong, supplies of both oil and gasoline are enhanced.

Gasoline demand, not as strong as it would be if not for recently much higher gasoline prices, is also contributing something to recent price softness. The average price remains about 42 cents a gallon above what it was at the start of 2005.

Short term, assuming no interruption of the enhanced supply for either crude or gasoline, and assuming that some of the retail margin gains from recent wholesale-retail lag times will be reversed, then more price cuts at the pump are likely, analyst Trilby Lundberg said.