I opened and closed Oil falls to lowest prices since March with the state of the local retail gas market and the prospects for lower prices.
When I checked Gas Buddy two weeks ago, the stations in my old neighborhood were selling regular for $2.76. Tonight, it shows them at $2.65. Furthermore, the Detroit average has fallen to $2.72, 21 cents below the $2.93 it was at two weeks ago. It appears likely to fall even more...watch for continuing falling prices at the pump and the return of Limbo Kitty. Happy motoring!Yesterday, I had an errand that took me near my old neighborhood and its cheap gas stations, so I drove the Prius to fill up. The corner station and one of the two down the street were selling regular for $2.56 and a third was selling it for $2.55. I filled up the Prius at the lowest price station, which should last me another 400+ miles. By the time my new car needs another fill-up, I'll be teaching in the area and prices should be even lower.
Prices have continued to drop, as Gas Buddy shows that all of those stations lowered their prices last night by another penny and the station where I fueled up dropped its price even lower this afternoon to $2.51. They are all pursuing the Detroit average, which was $2.62 yesterday and sank to $2.61 today. Crude oil and seasonal price patterns will pull prices down even more. Last Friday, WTI was selling for 48.14 and Brent for $54.62. The same day, RBOB gasoline futures settled below the 200-day moving average of $1.8514, and they were even lower yesterday at $1.83. While the downward trend reversed itself with a dead cat bounce of $48.52 for WTI as listed on Oil-Price.Net, Brent's fall continued unabated to $53.31 yesterday. The slide became even more precipitous today, as the Reuters headline read Oil drops for fifth week; U.S. crude in biggest monthly fall since 2008.
U.S. crude posted its biggest monthly drop since the 2008 financial crisis on Friday after a string of losses in July triggered by China's stock market slump and signs that top Middle East producers were pumping crude at record levels.Oil has continued to fall after the U.S. market closed. It's time for Limbo Kitty to return.
A higher U.S. oil rig count for a second straight week added to the market's downside Friday despite a weaker dollar, which would normally support commodities.
U.S. crude settled down $1.40, or almost 3 percent, at $47.32 a barrel. It slid more than 2 percent on the week.
Through July, U.S. crude was down 21 percent, its largest monthly decline since October 2008, when oil had an epic collapse at the outbreak of the financial crisis.
Brent settled down $1.10, or 2 percent, at $52.21 a barrel. It lost 5 percent on the week and 18 percent on the month.