The price of a barrel of crude oil dropped below $70 yesterday afternoon in intra-day trading for the first time since late February thanks to continued concerns over both the European debt crisis and weaker than expected demand.
However, as the U.S. stock markets rallied to end the session in positive territory, the price of oil finished slightly over $70 per barrel. In trading this morning, the price of oil has climbed to $71.64 per barrel.
Despite this morning’s small rally, the price of oil has fallen significantly over the last two weeks after hitting a nearly two-year high of $87.15 per barrel on May 3.
The corresponding response from gasoline prices has been relatively muted, with prices falling from $2.94 per gallon on May 5, to this morning’s price of $2.87 per gallon. However, since we are nearing the start of the busy summer driving season, I suppose this makes sense.
Currently there are nine states reporting an average gasoline price above $3 per gallon, with Alaska reporting the highest price at $3.59 per gallon. Oklahoma has the lowest state-wide average price at $2.65 per gallon.
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