NYMEX Crude keeps listing lower and lower. This seems odd considering that the Memorial Day weekend ahead is supposed to mark the official start of the summer driving season. The drop in normal NYMEX trading today was down $0.91 to $91.66 per barrel. Oil (WTI) was at $100 earlier in May, and it was closer to $110 as recently as the end of February.
The United States Oil (AMEX: USO) ETN is currently down 1.7% at $34.53 and that nearly matches the low seen last Friday. It has a 52-week range of $29.10 to $42.30.
AAA has a daily fuel report showing that the national average is $3.68 for a gallon of regular unleaded and $3.845 for a mid-grade gallon of unleaded. GasBuddy lists the average price today for regular unleaded as $3.888 per gallon.
Gasbuddy even shows the lowest state average of $3.305 per gallon being in South Carolina, with California being the highest of the states (not counting Alaska and Hawaii) at $4.308 per gallon.
The long and short is that this may be tied at least some to currency appreciation of the U.S. Dollar, but the growing fears of a the cloud of recession is causing perhaps the greatest fear out there for oil and gasoline prices.
JON C. OGG