Gas Prices to Drop by Summer
Analysts are saying gas prices are going to drop just in time for summer vacation. We could see a drop at the pump by as much as 50 cents by June. It’s about time.
Gas is almost a dollar more now than it was at the beginning of 2011. Was the rise in gas prices really necessary? Prices are based on pure speculation and that is a wrong way to price dont you think? This drop might not be enough to raise your glasses and toast but it could give some relief. Demand on gas has gone down since the price has hit $4.00. Americans are conserving and driving less. They are also spending less, experts think that if prices were to decrease more would be spent on other thing, ummm duh, I dont need to have a PHD in economics to realize that.
This past week, there were many contributing factors for the drop; Oil, the major ingredient for gasoline dropped 15 percent in price. Investors who were worried about rising oil supplies and falling gasoline demand in the United States helped drive down the price. Oil prices were also responding to a rising dollar. Oil is priced in dollars. So a stronger dollar makes oil less appealing to people buying with foreign currencies.
It was the largest weekly drop for oil in two and a half years and oil will keep falling in coming weeks — from about $97 a barrel to about $80.
Thats good news if you are planning to drive for summer vacation. It can’t come soon enough!