The midsummer oil price plunge deepened last week with crude some 15% below its early July peak. Gasoline matched all of the crude decreases and more, pushing refiners into the red on their marquee product. The declines were broad-based with spot unleaded falling below $3.00/gal in virtually all bulk markets. The decline was not limited to the gasoline component in mixed fuels. Ethanol prices fell as low as $2.25/gal in the Midwest, maintaining that blending could reduce finished prices another 8-llcts/gal. The drop did not come with a corresponding decrease in retail, but huge spreads between aggressive unbranded street prices and major pump values implied that some huge decreases were forthcoming. Based on the declines in the last two weeks, many states saw prices fall below $4.00/gal.
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