CSP, August 31, 2010: Stuck in Stability Gasoline has little room for price change, says Lundberg

CSP, August 17, 2010: Price Ping-Pong Crude about to send gasoline back down, says Lundberg

CSP, July 27, 2010: Downstream Margins Shrink Lundberg: Crude oil up, retail stable

CSP, July 13, 2010: Moderate Oil, Gasoline Price Bands Retail gasoline dips 4 cents, says Lundberg

CSP, June 30, 2010: Pump Price Up Nickel; Little to Follow Retailer margin rose slightly on average in past two weeks, says Lundberg

CSP, June 15, 2010: (Relative) Stability a Possibility Pump price slide continues, says Lundberg

CSP, August 31, 2010: Stuck in Stability Gasoline has little room for price change, says Lundberg CAMARILLO, Calif. -- On August 27, the U.S. average retail regular grade price is $2.6979, down 7.43 cents per gallon from August 13, according to the most recently Lundberg Survey of approximately 2,500 U.S. gas stations. Two weeks ago, crude oil dictated that gasoline would lose the 4 cents it gained, or even more, because it had dropped back to its typical price of $75 per barrel. Then it stayed there, smack in the middle of its common range of $70 to $80, where it has been most of the time for the past year. Assuming no oil supply mishap, gasoline price has very little room to move: Supply remains glutted, demand remains hobbled. The fact that demand softens seasonally from here, and because retail margin gave up only a little of its mid-August windfall, indicate that short term gasoline price change, if any, should be down. The retail price is now less than 6 cents higher than one year ago, and may edge closer still. But crude oil is king of refined product price moves, trumping even gasoline's strong seasonality of consumption and the effect of the country's damaged employment level upon consumption. It will decide where pump prices go. Around the country, wholesale-retail gasoline lag time currently implies retail margin down pressure in more than half the markets, up pressure in a few, and stability in the rest. Up pressure is not regional; for example, it is indicated in Miami, Salt Lake and Jackson, Miss. Current U.S. average: 16.03 cents on all grades pooled.

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