The Car and Truck Fleet and Leasing Management Magazine

Gas and Oil Prices Drop Due to European Economic Concerns

May 10, 2012

WASHINGTON – The U.S. Energy Information Administration (EIA), and AAA, released their most recent reports, with both noting falling retail gasoline prices and oil prices. EIA said it revised its outlook for gas prices downward, now saying that it expects the average retail price of gasoline to be around $3.79 per gallon from through September, which is 16 cents per gallon less that the EIA estimated in its previous outlook.

This number is close to the current national average for gasoline at retail, which AAA said was $3.78 per gallon on May 7. This price is four cents less than the week of April 30 through May 4 and 20 cents less than the same time a year ago.

Although EIA revised its outlook downward, it stated there is a 22% chance that prices could exceed $4 per gallon in September based on the market value of futures and option contracts for New York Harbor Reformulated Blendstock for Oxygenate Blending (RBOB). The EIA said that an RBOB contract price exceeding $3.30 per gallon has traditionally led to retail gasoline prices above $4 per gallon.

In terms of what’s affecting prices, AAA said the results of recent European elections over the May 5-6 weekend (in France, for example, where Francois Hollande was elected as President), and growing concern over negative global economic conditions, put downward pressure on oil prices. Also, as the U.S. dollar grows stronger when compared with foreign currencies, crude oil futures, which are priced in dollars, become more expensive to invest in, putting more downward pressure on oil prices.

As for oil production in the U.S., it’s on the rise, according to the EIA. The organization said it expects U.S. total crude oil production to increase 0.5 million barrels per day (bbl/d) in 2012, at 6.2 million bbl/d, which is the highest level of production since 1998. The EIA also expects U.S domestic crude oil production to increase to 6.4 million bbl/d in 2013.

Twitter Facebook Google+


Please note that comments may be moderated. 
Leave this field empty:

Fleet Incentives

Determine the actual cost of owning and running a vehicle in your fleet. Compare vehicles by class and model.


Fleet Tracking And Telematics

Todd Ewing from Verizon Connect will answer your questions and challenges

View All


Fleet Management And Leasing

Jack Firriolo from Merchants will answer your questions and challenges

View All


Fuel Management

Bernie Kanavagh from WEX will answer your questions and challenges

View All


Sponsored by

DriveCam is a company that provides an in-cab camera monitoring system and fleet tracking and management software.

Read more

Fuel Saving Strategies Survey

View our 2008 survey to benchmark your fleet's fuel and green strategies with other fleets.

Fuel Calculator

A managed fuel program can help you save time and money and gain control over the way you fuel your vehicles. Determine your potential savings by using our fuel calculator.
Launch Fuel Calculator 

Fuel Prices

U.S. Gasoline and Diesel Fuel Prices.

Launch Fuel Prices 

Up Next

More From The World's Largest Fleet Publisher