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Some Analysts See Signs of Respite from Record U.S. Gas Prices
May 25, 2004 -- Gasoline prices pushed to a record high in San Diego yesterday, as did crude oil in New York, but despite the hikes hopes arose that the punishing upward trend might soon end. The Utility Consumersâ Action Network retail gas survey posted a record price for regular unleaded in San Diego County yesterday of $2.38 per gallon, up 0.3 cent from Friday. National prices also set records. At the same time, crude oil futures on the New York Mercantile Exchange moved up $1.79 to $41.72 a barrel, pushing past the $41.55 record set one week ago. Prices rose on fears that expected increases in world oil production led by Saudi Arabia wonât be sufficient and on reports that Royal Dutch/Shell Group had shut down an oil platform in the Gulf of Mexico because of a leak. But prices to independent dealers have fallen in recent days, with one dealer reporting the biggest decline in months. Bob van der Valk, bulk fuels manager for Cosby Oil Co., said two straight business days of wholesale price decreases had cut the price per gallon for unleaded regular by 10 cents. Van der Valk said that could soon translate to cheaper gas for regional motorists. "Some of the independents might even lower prices before the Memorial Day weekend," he said. "And all this talk about Saudi Arabia might also have an effect." Oil industry analysts said the fundamentals of supply and demand are not as bad as current oil and gasoline prices would suggest. --------snipped----- Posted by: Mark Espinola 2004-05-26 |
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