Preferred Financial Services analyzes and reviews the gasoline price trends for the summer….
Andover, Massachusetts June 23rd 2010— As usual the American public is watching the price of gas as summer kicks into high gear. The following two months are the busiest on the nation’s roads and Americans spend more on gas in the summer than at any other time during the year. The price of gas is even more relevant this year as this variable cost can really impact the budgets of American families nationwide.
The price trend over the past few months has been down but this appears to be changing just in time for the 4th of July holiday weekend. Throughout much of April and May prices dropped as the oil markets were shaky due to the Greece Debt Crisis as well as continued uncertainty over the strength of the world economic recovery. However, the average price of a gallon of gas has risen 4 cents in just the past week and the general consensus among economists is for the price to settle around $2.90. The current national average is $2.73 with higher costs out west and the lowest costs being found in the Midwest.
This price rise and the expected increase over the next 2 months can be attributed to a variety of economic and environmental factors. The European debt crisis has faded and manufacturing data from the US and China indicate the recovery is moving ahead though still at a slow pace. The price of crude oil generally rises as economic outlooks improve so we should see a continued rise in the price of crude oil as the economy recovers over the next few months and continues to grow. The oil leak in the gulf is also starting to impact the price of oil for a variety of reasons. Oil is traded as a commodity on the open markets just like stocks so the price can be heavily influenced by non economic factors such as people’s disgust with Big Oil after the leak. The temporary ban on deep water drilling in the gulf coupled with a possible delay of oil shipments into refineries along the gulf coast will lead to higher prices even if ships are not delayed and the ban is lifted shortly. This is because crude oil traders are making bets that the ban will last and that the oil slick could delay oil deliveries to the American Oil Hub along the Texas Gulf Coast. Although supply has not been impacted yet, the rise in crude oil prices indicates that investors are betting that the supply will be impacted by these events and this does not even take into account events such as hurricanes that can severely impact oil supplies nationwide.
Although prices are expected to rise to $2.90 per gallon, consumers should be thankful that we will not be seeing a return to $4+ per gallon anytime soon. So, is your growing gas budget impacting other parts of your household budget? Have you changed your driving habits or considered carpooling/public transportation? At what price will you consider making lifestyle changes? I would love to see your thoughts on this annually interesting topic!
Preferred Financial Services is a debt reduction firm certified by the CFC (Center for Financial Certifications) and accredited by U.S.O.B.A. (United States Organizations for Bankruptcy Alternatives). Headquartered in Andover, Massachusetts, Preferred Financial Services has been a leader in the debt reduction industry since 2003. Preferred Financial Services has acquired some of the best experience in the industry over the past 7 years. In 2009 alone Preferred Financial Services reduced over $16.5 million worth of consumer debt for just $6.4 million, for a savings of about 60%- and over 2,900 accounts were settled on behalf of their clients.
For more information, please visit www.pfsdebtrelief.com or follow us on our blog at www.pfsdebtrelief.com/blog/
Contact:
Stephan Tavernini
