A recent price rally that put oil above $60 a barrel for the first time this year may not last.
A New York Times Article noted that growing supplies of oil could push prices back down. The price of oil had fallen almost 60 percent from June to the start of 2015.
Meanwhile, according to the article, oil companies have been cutting their investments in exploration and production by as much as 40 percent, so supplies should drop in the long run.
There may be further complications for Florida.
As reported in Oil Express, the newsletter of the Oil Price Information Service, Andy Lipow of Lipow Associates said the Florida market could depend more on European supplies, rather than gasoline from the Gulf Coast. Lipow said Gulf refiners may opt for the simpler route of exporting the barrels rather than shipping them to Florida.
Lipow also anticipates a summer slide after the spring rally in gasoline prices.
