This weekend's news out of Cyprus and the negative impact it has had on the Euro has been an incremental positive for US consumers in the form of lower prices at the pump. Weakness in Europe has had more of a negative impact on Brent crude oil (European/global benchmark) than it has had on WTI crude oil (US Benchmark), and since gasoline prices are more tied to Brent crude oil, lower Brent equals lower gas prices. In the last several days, the spread between Brent and WTI crude oil has narrowed considerably and is now within ten cents of a new six month low.
With the pullback in Brent crude (and the WTI spread), prices at the pump have also retreated from their short term highs. After peaking out at $3.79 on 2/26, the average price of a gallon of gas has declined by ten cents to $3.69.