Will the pain at the pump continue?
The pain at the pump is a little less severe than is was last month and there are some signs that gas prices may continue to drop. Crude oil inventories continue to rise – as more supply is placed on the market, prices will lower. Supply and demand 101.
This week’s crude oil inventory report from the Department of Energy (DoE) showed that crude oil stockpiles rose for the seventh straight week. Inventories not only rose, but they were also higher than expected (3.7 million barrels vs. 2.0 million estimate) for the seventh consecutive week. Once again this week, crude oil inventories are at their highest levels of the year, and for this time of year are at record highs. Furthermore, over the last seven weeks, crude oil inventories have risen by 33.2 million barrels. Since 1984, the only other period where crude oil inventories rose by a greater amount was in April 2001 when they rose by 34.5 million barrels in a seven week period.
In addition, gas prices are lower than they were a few weeks ago:
Investors will want to keep an eye on this as higher fuel prices will have an impact on what consumers will be doing and purchasing this summer.
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