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Oil, gasoline prices declining

May 21, 2012 at 8:53 AM

WASHINGTON, May 21 (UPI) -- Oil prices could drop further this week as crude piles up in the central United States, which a survey company said could push gasoline prices lower.

Oil prices could continue a slide into this week despite the reversal of the Seaway oil pipeline from the storage hub in Cushing, Okla.

Enterprise Products Partners and Enbridge Inc. announced during the weekend that first oil flowed through the reversed Seaway pipeline. For the first time,oil flowed from Cushing to Houston instead of the other way around.

Reversing crude oil deliveries on the 512-mile pipeline could reduce transportation costs and accelerate development of crude oil reserves in North America.

This, and economic concerns from the United States and European Union, could help push oil prices lower, reports Bloomberg News. Trilby Lundberg, president of Lundberg Survey, told the news service that gasoline prices, meanwhile, were down more than 6 cents on average.

"The falling crude-oil price has allowed this slide in the gasoline price," he said. "The weakness in the U.S. and European economies discourages the crude-oil price."

Price declines were forecast for the near future.

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