Economic uncertainties push current crude oil prices further down the charts
Oil prices in the United States declined to $81.21 per barrel recently amid slowdown in China’s economy a month ago. The economic situation in China has fanned doubts of an impending economic recovery. This is the lowest drop since October last year.
However, prices have gone up again slightly, to $83.08 per barrel at the NYMEX. In London, prices of crude at ICE Futures Europe slid by a few cents above the dollar to $97.37 per barrel.
Senior Analyst Phil Flynn of Price Futures Group disclosed that the dampened oil price was chiefly due to China and its sluggish non-manufacturing PMI, which pointed to a waning economy.
He added that crude oil price per barrel could slide down further to $80 by the close of the week. This price scenario would likely happen in the event that commodities markets become pessimistic about the debt crisis and the very fragile state of Europe’s banking sector.
U.S. motorists have more money to spend these days as prices of gas at the pump have kept a downward trend. This is true among a large number of U.S. states, including California.
Regular gasoline posted an average price of $4.22 per gallon in California, lower by $0.06 compared with last week’s average. According to AAA, the price averages were computed based on a hundred thousand gas outlets situated in different U.S. states.
On a national level, the average price of regular gas slid by 5.6 cents from a week ago, to $3.585.
Senior Analyst Patrick DeHaan of GasBuddy.com points out that the current downward trend in gas prices is expected to extend further, with residents from the West Coast beginning to enjoy cheap gas in the coming days. On the other hand, crude oil prices are likely to take on a similar trend.
GasBuddy.com strictly monitors gas prices, particularly floor and ceiling price data made available by over 140,000 gas stations across Canada and the United States.