Gas Prices Ease, Futures Retreat on Slower Jobs Growth

As bad as slower jobs growth can be on a recovering U.S. economy, it can create a positive side effect in the form of lower gas prices – and that’s the trend that is emerging with fuel prices at the pump now averaging less than a year ago.
Today’s price for regular gasoline stood at a national average of $3.78 a gallon, according to AAA’s Daily Fuel Gauge Report.
That compares to $3.94 a gallon one month ago – and $3.98 a year ago.
Fears of a national average of $4 a gallon have subsided considerably in the wake of slower U.S. jobs growth and growing fears of further economic downturns in overseas markets.
Front-month futures contracts for crude oil and gasoline have pulled back in light of Friday’s disappointing U.S. unemployment report.
Employers added 115,000 workers to their payrolls last month, the Labor Department said, falling sharply below analysts’ expectations. The unemployment rate eased down to 8.1 percent, but only because the labor force shrank with fewer people actively looking for jobs.
Largely in response to the labor report,  June crude fell $4.05, or 3.95 percent, to settle at $98.49 a barrel, after trading from $97.51 to $102.72 at the New York Mercantile Exchange. The slide was helped along by technical selling after U.S. crude fell back under its vital $100 a barrel benchmark.
Last week, NYMEX crude fell $6.44, or 6.1 percent, the biggest weekly percentage loss since September, when prices fell 9 percent.
U.S. gasoline futures declined by more than 2 percent, falling below $3 a gallon for the first time since February and sliding below its 100-day moving average.

Leave a Reply

Your email address will not be published. Required fields are marked *