Gas prices continue push upward
The national average for a gallon of regular unleaded gasoline was at $3.85 on Friday, up three cents from a week ago, 30 cents from a month ago and 99 cents higher than a year ago.
The price at the pump has gone up 78 cents since the beginning of 2011. The push upward this week came from increases in trading in crude-oil, which was at $112.29 a barrel on Thursday, up 2.4 percent on the week.
“Easter weekend is here and Memorial Day weekend is just five weeks away, which has motorists wondering just how high will gas prices climb before the unofficial start of summer arrives,” said Martha M. Meade, manager of public and government affairs for AAA Mid-Atlantic. “The (crude oil) market’s momentum makes it impossible to rule out $4.00 a gallon gasoline by Memorial Day, despite some analysts’ predictions to the contrary, however we remain cautiously optimistic that we’ll see some gas price stability in the coming weeks.”
In its weekly report, the U.S. Energy Information Administration data showed crude stocks fell unexpectedly by 2.3 million barrels to 357.0 million barrels, compared to analysts’ expectations for a 1.1 million barrel build. Gasoline stocks fell for the ninth straight week by 1.6 million barrels to 208.1 million barrels, which was in line with expectations. Nationwide demand sagged 119,000 barrels per day (BPD) to 9.062 million barrels, 1.8 percent lower compared to the same week a year ago.
Gas prices creeping toward $4 a gallon
The national average price of a gallon of regular unleaded was at $3.83 a gallon as of Monday morning, up six cents from a week ago and 97 cents over the past year.
That’s the bad news. The sort of good news: Don’t expect prices to stay at this level for too long.
“Should prices continue their upward tick, demand would undoubtedly be affected, theoretically reversing the price of crude oil and gasoline,” said Martha M. Meade, director of public and government affairs for AAA Mid-Atlantic.
Crude oil hit their highest levels in more than two and a half years early this week, trading above $113 a barrel, before dropping below $106 a barrel Tuesday. Despite continued unrest in the Middle East and North Africa, analysts believe this week’s price dip could be a delayed reaction to softer demand and speculators sensing the end of the bullish run.
In addition, as markets adjust to turmoil in Libya and supply disruptions, focus returned to weakness in the U.S. dollar and better-than-forecast consumer confidence, both aiding crude oil’s bounce back following a tumble early in the week.
In all, crude oil prices dipped 3 percent last week to close at $109.66 Friday.
In its weekly report, the U.S. Energy Information Administration data showed crude stocks rose 1.6 million barrels to 359.3 million barrels. Gasoline stocks fell 7 million barrels to 209.7 million barrels.
“With Memorial Day weekend just six weeks away, motorists and analysts alike will continue to eyeball the direction of crude oil markets and gas prices looking for any signs of an about face,” Meade said.
SDHS student wins AAA poster contest
A poster created by Dylan Bozic, a student of Stuarts Draft High School, has been recognized by AAA Mid-Atlantic for earning first place in its Annual Traffic Safety Poster Contest.
Dylan was awarded first place in the High School (9-12) division covering the subject of Teen Driving. Dylan’s artwork was selected by AAA Mid-Atlantic from among nearly 1,400 entries. A panel of traffic safety experts judged the entries based on originality, technique, visual impact and relationship of messaging to traffic safety. His entry was selected from among hundreds of high school submissions.
“Dylan’s poster not only showcased his artistic talents, but also helped spread an important message about teen driving safety,” said Martha M. Meade, Manager of Public and Government Affairs for AAA Mid-Atlantic. “Motor vehicle-related crashes continue to be the number one cause of death for children over age 2, and we hope entries such as Dylan’s will help students’ share the importance of traffic safety with their peers.”
The Annual Traffic Safety Poster Contest aims to reduce traffic related fatalities through education and community outreach. Each year, students design posters and public service announcements using traffic safety slogans selected by AAA. Entrants are grouped according to grade: K-2, 3-5, 6-8 and 9-12. First place winners are awarded a $500 Visa Gift Card; second place winners receive a $250 Visa Gift Card; third place winners are given a $100 Visa Gift Card; and those receiving an honorable mention get movie tickets and a AAA Atlas.
Gas prices stabilizing
Prices at the gas pump have seen some stability after a tumultuous past few weeks, though at levels that are still uncomfortable for most.
The national average price of regular grade gasoline was $3.56 Friday, up two cents from a week ago, 37 cents higher than month ago prices and 75 cents higher than year ago prices. Gas prices remain 55 cents below the all-time high of $4.11 a gallon set back in July 2008.
Despite a drop below the $100 mark for two trading session last week, crude oil began the week above the $100 a barrel mark for the third consecutive week following air strikes by U.S. and allied forces in Libya last weekend at the order of the U.N. Security Council. Prices jumped $2 a barrel late last Sunday and reached a two and a half year high Wednesday ($105.75) due to a combination of a weaker U.S. dollar, a stronger stock market and fears of extended conflict in Libya.
Trading remained volatile as investors awaited the next turn of events in the Middle East and North Africa, as well as new developments surrounding Japan’s nuclear crisis. Crude oil settled at $105.40 a barrel Friday. Since mid-February, crude oil has surged more than 20 percent.
In its weekly report, the U.S. Energy Information Administration data showed crude stocks rose 2.1 million barrels to 352.8 million barrels. Gasoline stocks fell by 5.3 million barrels to 219.7 million barrels, some 5 million barrels below a year ago, putting inventories 762,000 barrels below the five year average (just seven months ago gasoline stocks showed a 26.3 million barrel surplus to the five year average). The EIA also noted demand rose 244,000 barrels per day (bpd) to 9.074 million bpd.
“Gas prices have been relatively flat for the past two weeks, in stark contrast to crude oil, which continues to react to daily developments in the Middle East, North Africa and Japan,” said Martha M. Meade, manager of public and government affairs for AAA Mid-Atlantic. “Continued volatility has made it difficult to forecast where gas prices will go in the short term, but if the crude oil market is any indication, we’re likely to see gas prices continue the upward trend that began one month ago. Analysts believe gas prices will reach $3.75 a gallon in April, the typical start of the peak driving season.”
Gas prices stabilizing
Have gas prices hit their peak? It’s too early to tell, but a month of consistent increases came to at least a brief end after the average national cost of a gallon of regular unleaded hit a recent high of $3.56 a gallon on March 16.
The national average is at $3.54 a gallon this morning as crude-oil prices have continued to stabilize themselves in the wake of the natural disasters in Japan that have impacted that nation’s economic output and thus demand for oil supplies in the short term.
Continued unrest in the Middle East heightened by UN Coalition forces taking action in Libya over the weekend are acting as a counterbalance on the crude-oil market. A barrel of oil is trading at $103 at the opening of trading Monday morning.
“While no one is ready to call this week’s stability at the gas pumps a trend, the recent slowing and even declines in some areas is welcome news for motorists,” Martha M Meade, manager of public and government affairs for AAA Mid-Atlantic. “Given the uncertainty in the crude oil market following continued unrest in the Middle East and North Africa, and last week’s 9.0 magnitude earthquake in Japan, it’s too soon to tell what the short or long term effects will be on gas prices.”
Story by Chris Graham. Chris can be reached at freepress2@ntelos.net.
Gas prices continue spike
Ten-plus cents more – that’s how much more you’re paying for gas than you were a week ago.
“Prices are changing so rapidly, and filling station attendants are switching the price signs so quickly that it is causing the heads of consumers to spin. They are bewildered, upset, and alarmed by the sheer rapidity and velocity of rising gasoline prices,” said Martha M. Meade, AAA Mid-Atlantic’s manager of public and government affairs.
The increase over the past week is the second largest one-week increase in gas prices since 1990. Across the nation, the price of a gallon of unleaded regular soared to $3.39, compared to $3.19 a week ago today. Week-over-week, that’s a 20-cent increase in the national retail price average.
It’s now $3.29 a gallon in the Commonwealth, compared to $3.18 a week ago.
Expect prices to increase even more, soon. The upheaval at the pumps is occurring just as demand is increasing and as refiners are jump-starting the switchover from blending winter gasoline blends to costlier summer gasoline blends, in advance of the summer driving season. That alone would cause pump prices to increase.
Why are prices escalating so rapidly? Motorists are now paying a “panic premium” for their fuel purchases, Meade said, with uncertainty over political unrest in the Middle East pushing the panic button. Potential unrest is brewing from Oman (which produces 900,000 barrels a day) to Algeria (with a daily output of 1.3 million barrels a day). The spreading turmoil and disintegration could have the most profound impact on the chain of standing dominoes: Iran and Saudi Arabia, some traders fear. With an output of 3.7 million barrels a day, Iran is OPEC’s second-largest oil producer and the fourth-largest crude oil exporter in the world. There’s even anxiety and hand-wringing about Saudi Arabia, the biggest domino of all, which boasts one-fifth of the world’s proven oil reserves, with 9 million barrels a day.
Edited by Chris Graham. Chris can be reached at freepress2@ntelos.net.
Huge gas-price jump overnight
A quick news blurb courtesy AAA Mid-Atlantic: Gas prices hurtled overnight, up an average of six cents a gallon from Thursday.
The average price of a gallon of regular unleaded in Virginia went from $3.10 on Thursday to $3.16 this morning. A month ago today a gallon of regular unleaded in Virginia cost $3.02. A year ago, a gallon cost $2.59, according to AAA.
The one-day jump illustrates the correlation between pump prices and crude oil prices, AAA Mid-Atlantic spokesperson Windy Van Curen said.
“Although price jumps of this magnitude are highly unusual, when crude oil prices escalate as quickly as they have, this becomes more common and could become a pattern in the coming days,” Van Curen said.
Story by Chris Graham. Chris can be reached at freepress2@ntelos.net.
