Gas prices expected to dip 50 cents by summer's end

by Jim Cross/KTAR (May 10th, 2011 @ 4:00am)

Arizona Wildfire News

PHOENIX - Oil prices have finally started dropping, but it could be weeks until consumers feel a significant dip at the pumps.

Valley economist Jim Rounds with Elliott D. Pollack and Company says a 50 cent per gallon drop in pump prices is realistic, but it won't happen overnight. "I wouldn't expect it in the next couple of months. It would probably be by the end of summer."

Rounds says speculators from hedge funds are almost entirely to blame for the high gas prices. "They start buying up commodity futures including oil -- we saw that with silver and grain and other things -- get in and you get out fast an you take your profits."

Now the hedge funds are bailing out after cashing in. "And once 2 or 3 major funds start to get out, you're going to see a little bit of a ripple effect and you're going to see more and more."

He says American consumers were hit hard by the high pump prices. "Every one cent increase at the pump for gas prices costs consumers around the country $1.2 billion."

Last 5 Comments

  • Reply Abuse Vote
    Amazing....
    aztoolman
    that the oil companies are training us to feel like this minor predicted 50 dip is a "cost savings" to each of us. This is nothing more than price fixing and they are getting away with it by hiring lobbyists to combat push back. DONT forget its predicted that the big 5 will make about 125 billion in profits this year, WHILE enjoying 22 billion in tax breaks. Doen't this make you feel good now, I mean we hate to put these guys in a bind or anything. another classic story of corporate greed (5x) and fleecing America.
  • Reply Abuse Vote
    Greed
    Ernier65
    is the worst of all sins and the big oil companies are one of the biggest sinners. You would think they would pass ona little of the $36 billion in profits back onto those that gave them that money. But NO, they will keep it and get fatter.
  • Reply Abuse Vote
    Yea, right...
    pleasegoalllocal
    Circle K at Dobson & Guadalupe jumped UP 6 cents overnight. Scumbags!!
  • Reply Abuse Vote
    Sure
    Concerned C
    I will hold my breath, opps I think not, then I won't be around if it happens...lol
  • Reply Abuse Vote
    Price Gouging
    David D
    So, it can go up .50/gal practically overnight, BUT, it takes months for it to go back down? "None Dare Call It A Conspiracy."
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