April 28, 2012
Cost of Gas
Current indicators are favoring lower prices in fuel, especially the cost of gas, over the next few months. The recent downward trend in gas futures is most likely signally lower fuel prices at the pump in the short-term. The following graph illustrates this decreasing trend, with a drop in gasoline futures of $0.21 per gallon over a month, a 6.4% decrease this month alone.
Graph courtesy of money.cnn.com
The potential downward trend, once it hits the pump is good news for the consumer, for business and industry, who rely on transportation of goods and feel the impact of the cost of gas associated. If it translates across to the user, a rough 6.4% decrease in fuel costs will help businesses who are struggling to balance budgets with the recent, previous spike in fuel costs. This should be noted as a potentially lasting on the short-term, as patterns change with summer months and supply and demand.
Oil Prices
The cost of Brent Crude Oil has slightly declined over the past month, mimicking the gas futures trend. The following graph from oil-price.net illustrates the similar pattern, with a dip in crude oil from a high of almost $125 a barrel to the current price of $119.
Graph courtesy of oil-price.net
Speculation has now simmered from the fears of gas hitting $5 a gallon, but consumers and businesses should take this information with caution as the impacts may be short lived, with other global concerns and factors weighing into future gas and oil prices.
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