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What Happened to $5 Per Gallon?

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    The Schork Report editor Stephen Schork weighs in on lower gas prices.

  • Duration 3:47
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-- -- -- I take a look at -- everybody talk about -- the and the US average for regular gasoline out three dollars and 76 cents that did down seventeen cents a gallon from last month.

Did -- for the short report joins me right does Damon it's always great to have you on the show.

What happened the five bucks a gallon stated we're back out.

Well what we've -- -- over the past month past two months is a -- up concerned with regard to supply around the world for crude oil.

Keep reminding January February why we got up to sell -- crude oil price is a 144 for the OPEC basket.

Was concerned with threats mean made by Iran over regard to the flow of oil -- -- -- -- We're not getting that anymore and I think consensus is building in the market that way in her -- sits down with the atomic agency from the UN next week.

He will start to see some sort of compromise so without that threat of a flow of supply you have a a pathway for lower prices here in the United States there was significant concern up until a few weeks ago.

About the dearth of refinery capacity IE -- Would we were really concerned that the wasn't going to be high enough supply to offset demand coming into the summer.

But we've had a couple of events one refinery down here in the Philadelphia area -- the trainer.

Was purchased and will stay open another refinery in south Philly is in negotiations for sonoco to sell that -- -- got a stay of execution for one month Scott's one month the gasoline making capacity the market wasn't so sure was -- just a couple of weeks ago.

So you have the supply concerns got to ease and help to lower the price and -- -- side.

OK just gotten several but know what it before -- -- would give -- -- -- out of my questions.

Liquid so sure I would ask you about tomorrow's inventory data that we're gonna get you hit you hit Iran you -- OPEC make you of course that refinery.

But overall what we're gonna get -- -- -- stocks at a 22 month low right now 222 month high.

So it looks like there's plenty of -- well you've got the midwest come with three got candidate come -- through -- everything points to.

Oil prices continuing to fall a bit secular the prices we're gonna today get another down day for nymex.

What are your call for we -- gasoline because that affects the economy -- that affects.

The market consumer spending everything in summer is here what he's today.

In indeed now with every dollar a lower and crude oil prices you're looking at about a two and have -- reduction.

In retail gasoline in the situation here for the consumer is in good shape what we've seen over the past couple weeks is a significant amount of oil that was trapped in the upper midwest find its way via pipeline in barging train.

Getting to East Coast refineries so we now have that chief Canadian North Dakota oil which is 101540.

-- below the real price.

Coming to the east also you're going to see a bit odd reversal of a pipeline that's now going to take instead of oil from -- up to the midwest.

It's gonna take well from the mid -- -- that cheap oil.

Down to the Gulf of Mexico.

Refinery at the center so you're getting cheap oil where you needed to -- and it does bode well.

So there is a very good chance with -- any sort of blow up with regard to -- -- That we've already seen the highs and gasoline that is the consumer at the retail level -- probably remain high as we normally do between now in the fourth of July holiday.

But what's the holidays over -- C didn't you can see September and went to grade gasoline there really is a good chance that prices will remain firm for the next month herself but didn't start the ease as we get into the mid part of the summer.

Well that goes to the question about the economy Stephen and you answer that that would actually be a boost for the economy and the markets Stephen -- they suddenly yeah announced that it can't show right.

Thank you very much -- Dennis like to talk to -- all day but man he -- this stuff about those country.

That boosts the economy to one dollar cheaper.

Per gallon gas is three million jobs from Q jobs it yeah.

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