Tags: Gasoline | gas | crude | oil.Prices | 3 | Gallon

Gasoline Prices Seen Staying Above $3 a Gallon

Wednesday, 22 Jun 2011 08:51 AM

Gasoline prices may be falling, down by around 10 percent since May, but don't expect them to fall too much. Prices will stay well above $3 a gallon for the rest of the year, experts says.

While the price of West Texas Intermediate crude has fallen by more than 20 percent to around $93 a barrel from a peak of over $115, Brent, which comes from the North Sea and largely determines the price of gasoline, still remains high at $111 a barrel, down only $15 from its high.

"Unfortunately, the most expensive grade of crude determines the price of gasoline," says Tom Kloza, chief oil analyst at OPIS, according to CNBC. "Brent is the most expensive. It represents crude on the water."

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(Getty Images photo)
Gasoline is selling around $3.64 a gallon, not far from a peak of $3.98 in May, according to the AAA.

"We may get down to that $3 to $3.25 neighborhood for some states that have lower taxes and cheaper supply," says Kloza.

The civil war in Libya has disrupted supplies of light sweet crude onto the market, and will also keep prices high.

Unrest in global financial markets stemming from the Greek financial crisis, meanwhile, isn't seriously affecting oil prices, for now.

"The oil market will only see a major impact if the crisis spreads to larger countries in Europe," according to JPMorgan, the Associated Press reports.

"The main path through which Greece impacts oil in the short-term is via the euro/U.S. dollar exchange rate."

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Gasoline prices may be falling, down by around 10 percent since May, but don't expect them to fall too much. Prices will stay well above $3 a gallon for the rest of the year, experts says. While the price of West Texas Intermediate crude has fallen by more than 20 percent...
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2011-51-22
Wednesday, 22 Jun 2011 08:51 AM
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