Gas prices end 54-day streak

The pain at the pump eases ever so slightly as gas prices fall three-tenths of a cent.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Catherine Clifford, CNNMoney.com staff writer

Gasoline prices and taxes by state
Prices at the pump can vary widely among states due to a number of factors. More

Find Your Next Car


What investment strategy will you follow for the rest of the year?
  • Aggressively buying stocks
  • Slowly adding more stocks
  • Beefing up bonds and cash
  • Not changing a thing

NEW YORK (CNNMoney.com) -- The price of a gallon of gas dipped Monday, snapping a 54-day run-up.

Nationwide, the average price for a gallon of regular unleaded gasoline edged down to $2.69, shaving just three-tenths of a cent from the previous day's average of $2.693, according to motorist group AAA.

The single day turnaround in prices does not promise a trend, but after a relentless climb in recent weeks, any pull back is welcome.

Prices have risen since the end of April, when the national average was $2.05 a gallon.

Two states still have gasoline above $3 a gallon. In California, the price of a gallon of gas averaged $3.027; in Hawaii, the average was $3.057.

"Father's Day might have represented the highest price you will pay for the next few months or so," said Tom Kloza, chief oil analyst at the Oil Price Information Service, which provides the information for AAA.

Kloza expects to see gas prices decrease between 5 to 15 cents in the upcoming weeks, as prices historically start deckling around July 4.

Retail gas prices follow wholesale gas prices and wholesale gas prices move off of crude oil, which is the main ingredient in retail gasoline. Wholesale gas prices fell between 10 and 20 cents last week, and that decline is working its way into the retail market.

Crude oil has more than doubled in price since mid-December, when it reached as low as $33.87 a barrel. At 9:30 a.m. ET on Monday, oil was trading under $68 a barrel.

But Kloza said the spike from December lows may have been a bit over-exuberant. Investors "probably got too enthusiastic" about the possibility of economic recovery and sent oil prices up too quickly.

He added that the fact that the tension in Iran did not send oil prices soaring "tells you that the market was mature."

Oil prices and gas prices need to recalibrate in the face of the reality of a long, slow recovery. A surge in gas prices threatens to derail any economic recovery. With consumers having to pour more dollars into their gas tank, the they will have to cut back in other areas.

Furthermore, consumers are already on edge with unemployment rates continuing to inch up. Friday, the government reported that jobless rates increased in forty-eight states and the District of Columbia.

Has the rebound in gas prices caused you financial hardship? Are you spending less on other items to help with the cost of driving? Have you postponed summer driving plans? We want to hear your experiences. E-mail your story to realstories@cnnmoney.com and you could be part of an upcoming article. For the CNNMoney.com Comment Policy, click hereTo top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
8 must-have travel apps Whether you've got wanderlust or an airline grievance, here are some apps to pack onto your phone. More
Hot stocks: 10 record breaking companies The S&P 500 is trading at all-time highs, and many well-known businesses are leading the charge. Time to buy or sell? More
My biggest retirement mistake Five CNNMoney readers share stories about saving that you can learn from. What they would do differently if they had another chance. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.