Report: Hikes in Pump Prices May Have Peaked
The average price for regular gasoline at U.S. filling stations increased 3.74 cents over the past two weeks and may have peaked, according to Trilby Lundberg, the president of Lundberg Survey Inc.
Bloomberg News reported that the price jump to $3.9671 a gallon covers the period ended April 6 and is based on the Camarillo, Calif.-based company’s survey of about 2,500 stations.
“Price hikes at the pump have been losing steam for weeks,” Lundberg said yesterday in a telephone interview. “Crude oil prices have slipped and if they don’t rebound in the very near future, gasoline prices will peak very soon, if they haven’t already.”
The highest price in the lower 48 U.S. states among the cities surveyed was in Chicago, where the average was $4.45 a gallon, Lundberg said. The lowest price was in Tulsa, Oklahoma, where customers paid an average of $3.66.
“The price spikes had been led by places like Chicago and Los Angeles,” Lundberg said. “Now, we see some of these prices tumbling.”
Gasoline on the New York Mercantile Exchange fell 1.3% to $3.3405 a gallon in the two weeks ended April 5.
“Compared to the magnitude of recent price spikes, this is small,” Lundberg said. The increase was the smallest rise for the motor fuel since the two weeks between Jan. 6 and Jan. 20, according to Lundberg Survey. A decline in U.S. oil prices over the past two weeks has helped, she said.
Prices had surged on speculation that refinery closings would tighten supplies and as crude rose on concern that tensions with Iran over its nuclear program would reduce oil supplies. New York-traded West Texas Intermediate crude is up 4.5% in 2012, and Brent oil on the ICE Futures Europe exchange has gained 15 percent.
Retail consumption this year through March 30 was 5.6% lower than the same period in 2011, according to MasterCard Inc. (MA)’s SpendingPulse report on April 3. Fuel use over the previous four weeks was 5.9% lower than a year earlier, a record 54th consecutive decline.
Oil may decrease this week after the Federal Reserve signaled it may refrain from more monetary stimulus and U.S. inventories surged the most since 2008, a Bloomberg News survey showed.