Gas Prices, Offshore Shares Fall In Tandem
July 24, 2000
Gasoline prices on the benchmark New York Mercantile Exchange (NYMEX) Monday dipped below 90 cents a gallon for the first time in nearly three months, signaling the end of this summer's red-hot run. After trading above a record $1.05 a gallon for most of June, front month gasoline futures have made a 16 percent dive to Monday's midday low of 88.50, the lowest intraday level seen since May 4. Gasoline last closed below 90 cents a gallon on May 3. The fall in gasoline prices, which amounts to over 20 cents since June and nearly ten cents over the past three trading days, comes amid a seasonal shift in the market from the summer driving season to the lag stage before the winter heating season heats up.
Meanwhile, the news proved poor for companies engaged in the production of products from offshore Gulf of Mexico, as many of the major offshore related companies were trading significantly lower. Toward the end of the trading session, for example, Global Marine was at 25 1/16, off nearly 8% for the day, and R&B Falcon was at 18 15/16, down more than 10% on the day.
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