Gas prices holding steady

A gallon of gas is still in the $2 range, but the good news is that prices seem to be holding steady.
“The continued relative stability of gas prices is good news for consumers, as people struggle with the effects of the recession on their pocketbooks,” said Martha M. Meade, manager of public and government affairs at AAA Mid-Atlantic.

There could be some room for frustration as prices at the pump are basically unchanged even as the price of crude oil on the open market has been on the decline. A barrel of crude oil can now be had for $50.33, and trading pushed the price below the $50 mark for a time last week as U.S. inventories hit their high-water mark for the past 20 years, an indication of continued lower pressures on the demand side that should be pushing prices overall in a downward direction.

The International Energy Agency released a report last week suggesting that demand worldwide is expected to fall to its lowest level in five years. An American Petroleum Institute report last week pegged demand in the U.S. in the first quarter at its lowest level in 11 years.

What it all adds up to: “Motorists should see stable and relatively low gas prices at the pump this summer – in some case, half of what they were paying for gas last year. In all likelihood, we will see gas edge up by mere pennies in the coming days,” Meade said.

 

– Story by Chris Graham