Take out the keys, throw open the garage, gas prices may soon end their wallet-busting ascent. Analysts armed with charts and calculators think gas prices may camp for the rest of the year around the $3 mark. Of course, hurricanes or explosions can wreak havoc on estimates and refineries, but barring interference from terrorists, careless workers, or Mother Nature, the worst may be over. From the L.A. Times:
The decline was based in part on the resumption of production at an important oil facility in Angola, analysts said. The drop also followed comments by officials of the Organization of the Petroleum Exporting Countries indicating that the cartel thought that oil prices above $60 to $65 a barrel were too high and indicating a willingness to boost production.
Analysts said it wasn’t clear whether OPEC would increase production before the end of the year. But they noted that the comments signaled a shift from just the last week, when cartel officials were saying crude supplies were adequate.
“That’s an important change of rhetoric from the cartel,” said Phil Flynn, vice president and senior market analyst for Alaron Trading Corp. in Chicago. “That sudden change was the big news in oil markets today.”
Thanks for the good news, OPEC. See you on the road.