Feds Think Bad Data May Feed Oil Spikes

Low year-over-year pump prices, oil demand drive revenue down

(AP) - Exxon Mobil’s first-quarter profit fell 58% from the previous year to $4.6 billion—its lowest profit in more than 5 years—as the world's largest publicly traded oil company, along with the rest of the industry, saw gas prices deflate dramatically. This time last year crude was in the triple digits, in the midst of a historic run-up to almost $150 a barrel. But prices spent the rest of the year retreating and have hovered around $50 a barrel since March. More»

Demand and recession drive price down

(NEWSER) - The Dow isn't the only thing plummeting. Amid falling demand, the average price of a gallon of gasoline has dropped over 35 cents in the last two weeks. The nationwide Lundberg Survey of 5,000 gas stations shows the cost of gas has slid more than 80 cents since March—the biggest drop ever recorded. More»

High supply, falling demand will ease prices, say experts

(NEWSER) - Gas prices are holding steady at $3.92 a gallon, and that could be on the verge of coming down, reports USA Today . With a key benchmark falling to a two-month low yesterday and growing signs of a global economic slowdown, experts think pump prices will fall short of the most dire predictions , as well as short of last year's $3.99 high and the all-time record of $4.11 set in 2008. Already in pricier markets, such as Chicago and Los Angeles, prices have dropped as much as 20 cents per gallon. More»

With crude oil so expensive, they can't make money

(NEWSER) - Add one more victim to the soaring price of petroleum—refineries. Yes, despite gas prices rising another 6% in February, refineries in the US Northeast are shutting down because they're losing money, reports Wall Street Journal . And with Philadelphia-based Sunoco set to close the largest refinery in the region in July, expect gas prices to keep going higher. "Our Northeast refining business has lost nearly a billion dollars in the past three years, and those losses have threatened Sunoco's very existence as a company," said a Sunoco spokesman. More»

Sure, policy affects things ... eventually

(NEWSER) - As gas prices rise, President Obama's approval rating falls , which makes sense, because those painful numbers at the pump are all his fault, right? Wrong, say oil experts and economists. The Washington Post breaks down their arguments:

• Policy: It definitely affects things, but it takes a long time for that to happen. Cars can take a decade to turn over, for instance, so tightening fuel efficiency rules doesn't kick in immediately. One expert notes that legislation George W. Bush signed in 2007 is helping stop the "current situation from getting worse."