After seven straight losing trading days, the price of crude oil has rebounded slightly, trading $.25 higher than yesterday’s close, and is holding at about $64.
Most analysts are stating that today’s mild rise in the price of crude oil is nothing more than a small bounce, which almost always occurs after such a hard sell off.
Yesterday, the price of crude oil fell $1.85 to $63.76, thanks to much higher than expected U.S. inventories for gasoline and heating oil. Since hitting record highs in mid-July, oil has fallen nearly 20%.
Thanks to the continued drop in oil, the average price of gasoline continues to fall, and now stands at $2.58 per gallon, the lowest prices have been since the first week in April.
While this is the time of year when gas prices naturally ease off their summer highs, the continued drop in the price of oil has undoubtedly played a large role in the dramatic drop in gasoline prices. Just one month ago, the average price for a gallon of regular gasoline was $3.03 per gallon, which means prices have fallen nearly 15% in one month.
With continued good news relating to U.S. inventories and relatively calm geopolitical news, we should expect the price of both oil and gasoline to continue to fall, although probably not as sharply.