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Gasoline at the pump this Memorial Day weekend will cost U.S. consumers about $1.00 per gallon less than at the same time last year, due to weak fuel demand and low fuel prices. oil.
Nationwide, one gallon of gasoline on average $3.57 on Fridayup from $4.59 a year ago, according to AAA, which also predicts 42.3 million people will travel this weekend by car, plane, bus or train, nearly 3 million more than the last year.
AAA predicts this will be the third busiest Memorial Day weekend for road trips since 2000.
Due to weak demand and accompanying recession fears, U.S. motorists likely won’t see significant price changes anytime soonunlike many summers.
“It’s very difficult for oil to recover if the majority of people in the financial community – speculators, investors – think there’s going to be a recession,” said OPIS head of energy analysis Tom Kloza.
Crude Oil rose for the second consecutive week, with Nymex Crude Oil in the first month (CL1:COM) for July Delivery Settlement +1.3% at $72.67/bbl, and July Brent (CO1:COM) farm +1.8% at $76.95/bbl.
AND F : (NYSEARC:USO), (BNO), (OCU), (SCO), (BOD), (USL), (UGA), (DROP), (JET), (USOI), (NRGU)
Crude had found support earlier in the week after Saudi Arabia’s energy minister knowledgeable oil short sellers to “be careful,” which analysts saw as a threat that OPEC+ could add more production cuts.
But the Russian Deputy Prime Minister poured cold water on the gains by expressing doubts about further reductions.
In other news this week, Baker Hughes reported a fourth consecutive weekly decline in the number of active rigs in the United States, indicating an upcoming decline in domestic production.
Energy stocks, as reported by the Energy Select SPDR ETF (NYSEARC:XLE), closed during the week -1.1%.
Top 10 winners in energy and natural resources in the last 5 days: (VGAS) +87.9%(STEM) +24.5%(CREG) +24%(BATL) +19.4%(REX) +16%(NRT) +14.6%(DKL) +13.3%(NRGV) +12.9%(SLDP) +12.1%(GRNT) +11.1%.
Top 5 energy and natural resource drops in the last 5 days: (ZIM) -21.3%(VIA) -17%(South Dakota) -16.7%(SVM) -15%(CHNR) -12.6%.
Source: Barchart.com