Oil Producers in for a ‘Crude’ Awakening

Business

0  Updated at 6:27 am, May 9th, 2012 By: ABC Digital
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Comstock Images/Thinkstock(NEW YORK) — Oil prices keep coming down.  Since the start of the month, the price of crude oil has dropped daily, falling to $96 a barrel Tuesday.

Analysts say it has to do with fears that the global economy is weakening, while the Saudis have boosted production.

That’s the bad news.

The good news, at least for American consumers, is that the price of gasoline has dropped more than 17 cents since April 1, hitting $3.76 per gallon on average nationally Tuesday.  That’s about 20 cents less than it was this time last year.

Meanwhile, the government is backing off predictions that gas will reach $4 a gallon by the summer and the Energy Department’s Energy Information Administration says that gas prices could actually fall further from now through September, although $3 a gallon is probably unrealistic.

Copyright 2012 ABC News Radio

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