Gas Prices Lower, Will Oil Stocks Follow?
According to the most recent Lundberg Survey, which measures the average price for a gallon of regular gasoline at stations across the US, prices at the pump have fallen over 11 cents in the past two weeks and now average $3.63 per gallon. The survey covered a two week period ending on June 24th, and measured 2,500 gas retailers across the nation. The highest gas bill currently in the country is in Chicago, where some stations are still charging over $4.00 per gallon, and the cheapest, was in Jackson, Mississippi, at $3.32.
Lundberg believes the lower prices have yet to factor in the IEA reserves (the intl. agency had member nations agree to release 60 million barrels of oil last week), saying “The rate of decline was reduced in the latest two weeks, but we have yet to see the impact of the government sale of crude.” Lundberg elaborated, “If we suppose that crude oil prices fall another few dollars, then this could accelerate the drop another 20 cents” for gasoline,” though “Poor economic news continues to be a factor in petroleum prices for crude and gasoline, with or without putting government oil up for bid.”
Keep an eye on these big name energy stocks to see if the lower pump prices startle shareholders:
Exxon-Mobil (NYSE:XOM), Chevron Corp. (NYSE:CVX), BP Plc (NYSE:BP), United States Natural Gas Fund (NYSE:UNG), Frontier Oil Corp (NYSE:FTO), United States Oil Fund (NYSE:USO), ConocoPhillips (NYSE:COP), Total (NYSE:TOT), Marathon Oil (NYSE:MRO), Suncor Energy (NYSE:SU) and Hess (HESS).
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