Gas prices continued to slip, but that may not last long. Oil has reversed its sell-off. According to AAA Fuel Gauge, a gallon of regular based on the average price across the country was $3.816, down from $3.819 the day before, $3.858 a week ago, and $3.925 a month ago. The optimism that the Federal Reserve showed last week was not undermined by a modest first quarter GDP data. Retail sales continue to be relatively strong, as is the purchase of automobiles. Car sales are expected to hit a four year high when figures are released on the first of May.
An Energy Information Administration report from last week showed U.S. oil supplies increased by 4 million barrels. But, WTI crude still trades above $104, and the prices has recently rallied to a four week high. Some of the credit has to go to the lingering worry that political problems and the tension over Iran weapon construction will not disappear entirely. April unemployment is about to be announced. That will help set the price of crude for at least several days afterward.