NEW YORK — Gasoline markets exhibited the first signs that an extended rally in pump prices is nearing an end after 52 straight days on the rise.
Gasoline futures started falling midweek after a government report showed a huge surplus. Already, wholesale gasoline prices in key markets like the Gulf Coast and Chicago had begun to fade.
Should prices continue to fall on the New York Mercantile Exchange, cheaper gas may be on the way for motorists.
“Supply won’t be an issue,” said Andrew Lebow, senior vice president and broker at MF Global. “That’s why gasoline futures are dropping. It’s down so sharply that it’s really going to be hard for crude or any of the energy commodities to show gains today.”
Gasoline for July delivery fell Friday by 10.5 cents, more than 5 percent, to settle at $1.9244 a gallon. The plunge in gas futures dragged down other energy commodities as well.
Benchmark crude for July delivery dropped $1.82 to settle at $69.55 a barrel in light trading as the contract was set to close Monday. The August contract fell $1.89 to settle at $70.02 a barrel.
While overall demand for energy remains weak, money has poured into oil markets recently as the dollar fell against the euro.
Meanwhile, retail gas prices added a half cent overnight to a new national average of $2.69 a gallon, according to auto club AAA, Wright Express and Oil Price Information Service. In Denver, a gallon of gas rose to $2.51 from $2.507 Thursday and is 29.4 cents higher than a month ago.
