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Gasoline at the pump this Memorial Day weekend will cost American consumers ~$1.00 a gallon less than it did at the same time last year, driven by weaker fuel demand and lower oil prices.
Nationwide, a gallon of gas averaged $3.57 per Fridaydown from $4.59 a year ago, according to AAA, which also predicts 42.3 million people will travel this weekend by car, plane, bus or train, nearly 3 million more than last year.
AAA predicts this will be the third-busiest Memorial Day weekend for auto travel since 2000.
Due to weak demand and associated recessionary fears, motorists in the United States You likely won’t see major price changes anytime soonunlike many summers.
“It’s very difficult for oil to rise if the majority of people in the financial community – speculators and investors – think there will be a recession,” said Tom Kloza, head of energy analysis at Ubis.
Crude oil rose for the second week in a row, with Nymex Crude Oil (CL1:COM) flat for July delivery. +1.3% to $72.67 a barrel, Brent crude closed in July (CO1:COM) +1.8% to $76.95 per barrel.
ETFs: (NYSEARCA: USE), (BNO), (UCO), (SCO), (DBO), (USL), (UGA), (DRIP), (GUSH), (USOI), (NRGU)
Crude oil found support earlier in the week after Saudi Arabia’s energy minister warned oil short sellers to “beware,” which analysts saw as a threat that OPEC+ could add more production cuts.
But the Russian Deputy Prime Minister poured cold water on the gains by expressing doubts about further cuts.
In other news this week, Baker Hughes reported a fourth consecutive weekly decline in the number of active drilling rigs in the US, indicating an upcoming decline in domestic production.
Energy stocks, as shown by the Energy Select SPDR ETF (New York: XLE), closed week -1.1%.
Top 10 gainers in energy and natural resources over the past 5 days: (VGAS) +87.9%(Yanbu) +24.5%(CREG) +24%(BATL) +19.4%(rex) +16%(NRT) +14.6%(DKL) +13.3%(NRGV) +12.9%(SLDP) +12.1%(GRNT) +11.1%.
The 5 largest losses in energy and natural resources over the past 5 days: (ZIM) -21.3%(via) -17%(SD) -16.7%(SVM) -15%(CHNR) -12.6%.
Source: Barchart.com