Page 46 - MIN SJA 3 MAART 2016
P. 46
U.S. NEWS A7
Thursday 3 March 2016
US Financial Front:
Even as gas prices rise, drivers will save at the pump
DAVID KOENIG expects crude prices to Gasoline prices are posted at a filling station, Wednesday, March 2, 2016, in Philadelphia. Gaso-
AP Business Writer average about $38 a bar- line prices are expected to keep rising until summer but remain far cheaper than in recent years,
DALLAS (AP) — Gasoline rel this year and $50 next due to the worldwide glut of oil.
prices have started their year. That forecast was
annual springtime migra- made before Saudi Ara- (AP Photo/Matt Rourke)
tion higher, but motorists bia’s oil minister forcefully
should still save money at rejected production cuts and heating oil are putting they believe that cheap- Chase Institute looked at
the pump in 2016. during a speech to a major more money in consumers’ er pump prices will last records from 26 million
The national average price oil-industry conference last pockets. a while. More consumer debit and credit card hold-
for a gallon of regular has week in Houston. The U.S. Energy Depart- spending should boost the ers and concluded that
risen for eight straight days Oil prices have been un- ment estimates that the economy. gas savings varied greatly
— the first time that has dercut by demand that average household saved “In West Texas, they are in by income and region. The
happened since last May, turned out to be weaker $660 because of cheaper a recession,” Christopher card holders spent about
according to the auto club than expected, especially gas in 2015 and will save said, “but it’s a net positive 80 percent of their sav-
AAA — to about $1.79 on in China and other devel- another $320 this year. for the United States and ings, almost 20 percent of
Wednesday. That’s still 54 oping countries. But for the Chris Christopher, director most developed econo- it at restaurants. They also
cents cheaper than at this most part, it’s a case of of consumer economics at mies that don’t depend increased spending at de-
time last year. oversupply — more crude research firm IHS, said con- too much on energy prices partment stores and on
Forecasters say prices is gushing into world mar- sumers will gradually spend for their livelihood.” entertainment, electronics
should rise at least 30 cents kets than consumers and more of their gas savings as Last year, the JPMorgan and appliances.
or more by June. Demand industry need.
will rise as people drive Last month, commercial
more, and supplies will inventories of U.S. crude
tighten when refiners slow topped 500 million bar-
down to perform mainte- rels for the first time; they
nance and switch to more are more than one-third
expensive summer fuel above their five-year av-
blends. erage. Iran is expected to
The U.S. Energy Depart- produce more oil now that
ment predicts that the na- it is free from international
tional average for a gal- sanctions. And produc-
lon of regular gasoline will ers like Saudi Arabia, who
peak at $2.08 from June could cut supply to prop
through August. Tom Kloza, up prices, are continuing
an energy analyst with the to pump away instead.
Oil Price Information Ser- Lower oil prices have led
vice, says the peak will be to layoffs at drilling com-
between $2.10 and $2.50 a panies and contributed to
gallon. weakness in the stock mar-
Either forecast would leave ket, but cheaper gasoline
prices well below recent
years. From 2011 to 2014, Survey: US companies added 214,000 jobs in February
the national average on
June 1 topped $3.60 and PAUL WISEMAN “It’s a very strong re- 27,000. But manufacturers and production.
some places saw gas over AP Economics Writer port. The labor market is shed 9,000 jobs in Febru- The ADP report comes
$4. Last year, gas prices WASHINGTON (AP) — healthy,” said Mark Zan- ary, first time they’ve cut out two days before the
peaked in June at $2.80 a U.S. businesses added a di, chief economist at payrolls since October. U.S. government’s official
gallon. healthy 214,000 jobs last Moody’s Analytics. “This is Manufacturers have been jobs report. Economists
Gas is cheaper because a month, another sign that very good news particularly hurt by economic weak- surveyed by the data firm
glut of crude has caused the U.S. job market remains in the context of the turmoil ness overseas, a strong FactSet predict that Ameri-
oil prices to tumble. Even resilient despite economic in the financial markets in dollar that makes Ameri- can employers — includ-
with a 30 percent rally weakness overseas and tu- the past several months.” can products expensive ing government — added
since Jan. 20, benchmark mult in financial markets. Moody’s helps compile the overseas and cutbacks in 195,000 jobs last month, up
U.S. crude closed Tuesday Payroll processor ADP said ADP numbers. the energy industry follow- from 151,000 in January.
down 68 percent from its Wednesday that the bet- Professional and busi- ing a big drop in oil prices. They expect that the unem-
June 2014 peak. ter-than-expected hiring ness services companies Some of the pain in manu- ployment rate remained at
Motorists may enjoy the by private companies was added 59,000 jobs and facturing has been offset an eight-year low 4.9 per-
relative bargain for a while. up from 205,000 in January. construction firms hired by strong automotive sales cent.
The Energy Department
