AAA: Crude oil reaches six-week high
Prices at the pump surpassed the record annual average price established in 2011 ($3.51 gal) this week and have done so in record time.
In 2008, the year that saw the all-time high price for regular self-service gasoline ($4.11 gal) the $3.50 per gallon mark wasn’t topped until April 21. Last year, gasoline prices didn’t surpass $3.50 per gallon until March 8. This year, gasoline topped $3.50 per gallon on Saturday, Feb. 11. Continue reading “AAA: Crude oil reaches six-week high” »
AAA: Demand down, crude oil prices down, but prices continue upward tick
The cost of gas continued to rise to unseasonably high levels this week, despite decreases in the price of crude oil.
Reports show extremely weak gasoline demand, however refineries are responding to this decrease in demand by cutting back on production, resulting in some upward movement in prices at the pump.
Gas prices climbed to the highest price in more than four months this week, reaching $3.50 Friday, up 3 cents in the past week, up 13 cents in the past month and up 38 cents since this time last year. Yet, gas prices remain 61 cents below the all-time record high of $4.11 set in July 2008. Continue reading “AAA: Demand down, crude oil prices down, but prices continue upward tick” »
AAA: Gas prices holding steady
Gas prices for February have picked up right where they left off last month. In January, crude oil traded at record-high levels for the beginning of the year, translating to the highest gas prices ever for the month.
Gas prices averaged $3.37 per gallon nationally for the month of January, 27-cents higher per gallon than January 2011. The national average for regular grade gasoline climbed 8 this week to $3.47 per gallon Friday.
Prices are 18 cents above month ago prices and 35 cents above year ago prices, yet remain 64 cents below the all-time record high of $4.11 set three and a half years ago. Continue reading “AAA: Gas prices holding steady” »
AAA: Gas prices hold steady
Despite holding at historic highs for the month of January, gas prices have stabilized over the past few weeks, yet some wonder if this is just the calm before the storm for gas prices during the first half of the year.
The national average for regular grade gasoline inched up a penny this week to $3.39 per gallon Friday. Prices are 15 cents above month ago prices and 29 cents above year ago prices, yet remain 72 cents below the all-time record high of $4.11 set in July 2008. Continue reading “AAA: Gas prices hold steady” »
AAA: Gas prices stabilizing, still high
Three weeks into the new year gas prices stabilized somewhat, yet remain at historic highs for the month of January.
Despite U.S. demand for gasoline hovering at a multi-year low, high crude oil prices and reports of impending refinery shutdowns have fueled a 10-cent increase in the national gas price average since January 1. The national average for regular grade gasoline dropped a penny this week to $3.38 per gallon Friday. Prices are 17 cents above month ago prices and 26 cents above year ago prices, yet remain 73 cents below the all-time record high of $4.11 set three and a half years ago. Continue reading “AAA: Gas prices stabilizing, still high” »
AAA: Gas prices remain at historic highs for January
Gas prices remain at historic highs for early January, up by double-digits in many part of the country since the beginning of the year. Contributing to the increase was the repeal of the ethanol tax credit, causing gas prices to increase nearly 4.5 cents per gallon.
The national average for regular grade rose 4 cents this week (11 cents since January 1) to $3.39 per gallon Friday. Prices are 13 cents above month ago prices and 29 cents above year ago prices, yet remain 72 cents below the all-time record high of $4.11 set three and a half years ago. Continue reading “AAA: Gas prices remain at historic highs for January” »
AAA: Gas prices highest ever to start a new year
Average U.S. gasoline prices began 2012 just under $3.28 gal, the highest number ever to mark the beginning of a year and the fifth straight weekly increase in price.
Last year’s $3.07 per gallon high is now relegated to second place. The U.S. average price for regular self-service gasoline was $3.51 in 2011, the highest annual number of all time, and more than twice the price average seen in the first four years of the century. The national average for regular grade rose 8 cents this week to $3.35 per gallon Friday. Prices are 6 cents below month ago prices and 27 cents above year ago prices, yet remain 76 cents below the all-time record high of $4.11 set in July 2008. Continue reading “AAA: Gas prices highest ever to start a new year” »
AAA: Gas prices in 2011 highest ever
Motorists across the nation and in Virginia will have paid more, on average, for a gallon of self-serve regular gasoline in 2011 than ever before. With just three days left in the year, the national average price for gas in 2011 is close to $3.52 per gallon ,with Virginia’s average through today at a record high $3.41.
“As analysts look at everything from economic indicators and global developments to the most popular movies and photos of the year, motorists simply look at how they will continue to put gas in their cars in 2012,” said Martha Mitchell Meade, Manager of Public and Government Affairs for AAA Mid-Atlantic. “The average family in Virginia is predicted to have spent $4,544 on gas in 2011 as compared to $3,713 in 2010, an increase of $841 in just one year.”
While gas prices for the year are high, they have been dropping fairly steadily as the year draws to a close. Gas prices today in Virginia are 18 cents lower than they were on Nov. 1. Nationally prices are now 21 cents lower than the beginning of November.
Analyst Tom Kloza, chief oil analyst for the Oil Price Information Service, predicts that current lower prices will continue through the year’s end and into January when they will likely hit their lowest when demand is typically low. Kloza, however, predicts that prices could go up a full $1.00 from the lows in January as we head towards spring.
AAA: Gas prices highest ever at Christmas
The cost of gas is the lump of coal in motorists’ Christmas stockings this year, and although pump prices have declined of recent, consumers will still end up paying the highest ever price for gas at Christmas in history. The national average for regular grade dropped 4 cents from last week to $3.25 per gallon Friday. Prices are 15 cents below month ago prices. Just before Christmas 2010, the average price was $2.98 (27 cents lower) and $2.59 (66 cents lower) per gallon two Christmases ago in 2009.
Crude oil plunged to its lowest level in six weeks this week as industrial production declined for the first time since April in the U.S., the world’s largest oil-consuming country, and the strength of the U.S. dollar against the euro as the euro region’s ability to manage its debt troubles mounted. A strong U.S. dollar will suppress crude oil prices. Prices are down 5.3 percent since December 9, heading for a second weekly decline and the biggest since September 23. Crude is 3.1 percent higher this year after climbing 15 percent in 2010. Some analysts cautioned there could be further losses in store for crude, which would help to push gas prices further down. Crude oil closed down for the second straight week at $93.53 Friday. Continue reading “AAA: Gas prices highest ever at Christmas” »
AAA: Gas prices continue upward trend
Prices at the pump increased slightly this week amidst national and international economic volatility. The national average for regular grade gasoline reached $3.71 Friday, up a penny from last week, up 17cents from a month ago and 97 cents higher than year-ago prices. Gas prices remain 40 cents below the all-time record high of $4.11/gallon set in July 2008.
Crude oil trended downward this week as traders and investors awaited a resolution to the U.S. debt situation ahead of the August 2 deadline to avert an unprecedented debt default by the world’s largest economy. Also contributing to the downward trend was the relative strength of the U.S. dollar and virtually flat gross domestic product (GDP) data. Oil did see brief bumps due to news from the U.S. Labor Department showing applications for unemployment benefits fell by 24,000 to 398,000 last week, the lowest level since April, and news from the housing markets that previously owned home sales rose unexpectedly in June, both indicators that demand for oil could be on the rise. Crude oil closed at $95.70 Friday, down 4 percent on the week.
In its weekly report, the U.S. Energy Information Administration (EIA) data showed crude stocks rose 2.3 million barrels to 354 million barrels, ending seven consecutive weeks of declines. Gasoline stocks rose 1 million barrels to 213.5 million barrels. The EIA also reported total petroleum demand was 18.426 million barrels per day (bpd), 428,000 bpd lower than the previous week and 1.2 million bpd below the same week in 2010. Petroleum demand for the past four weeks totaled 18.756 million bpd, down 2.9 percent from last year. Gasoline demand for the past week dropped below 9 million barrels per day (bpd) to 8.99 million bpd.
“Despite mid-summer increases, gas prices remain 10 cents below where they were at the start of the summer driving season (Memorial Day weekend),” said Martha M. Meade, Manager of Public and Government Affairs for AAA Mid-Atlantic. “The upward trend in recent weeks is directly related to the upward movement of crude oil prices, which have been affected by national and international financial situations. As some of these issues are resolved, especially the U.S. debt crisis, analysts believe crude oil, and ultimately gas prices, will gain some clarity. However, a default would likely mean higher crude prices as the dollar weakens against foreign currencies.”
Tropical Storm Don made landfall along the Texas coast Saturday, causing a shut down of 300,000 barrels a day or 6.8 percent of oil production from the Gulf of Mexico, home to 31 percent of the U.S. oil output. Such an interruption in oil production, albeit relatively small and not prolonged, will likely lead to a bump in oil prices in the short-term.
Gas prices back on the rise
Temperatures weren’t the only thing on the rise throughout the Mid-Atlantic region this week. After dipping down to a low of $3.54/gallon on June 30 (following an early-May peak of $3.98/gallon), gas prices continued their upward climb for the third straight week. The national average for regular grade gasoline rose to $3.70 Friday, up 3 cents from last week, up 7 cents from a month ago and 98 cents higher than prices a year ago. Despite recent gains, gas prices remain 41 cents below the all-time record high of $4.11/gallon set in July 2008.
Crude oil crossed the $100/barrel threshold during trading on Thursday before settling slightly below the triple-digit mark, an impressive comeback after the commodity tumbled more than 20 percent between the end of April and the end of June on the heels of disappointing global economic news. At its highest level in about a month, crude oil has responded positively to positive developments in the Greek debt crisis and movement in the debate over extending the U.S. debt ceiling by the August 2 deadline. In addition to a weak U.S. dollar, crude oil was also supported by some signs that U.S. economic recovery has begun showing signs of strength, with jobless claims in line with expectations and the Federal Reserve Bank of Philadelphia’s economic index for July rose to 3.2 – above the forecast from economists and marking an impressive rebound from a negative reading last month. Crude oil closed the week at $99.87 Friday, a six-week high.
In its weekly report, the U.S. Energy Information Administration (EIA) data showed crude stocks dropped 3.7 million barrels to 351.7 million barrels. Gasoline stocks rose 800,000 barrels to 212.5 million barrels. Gasoline demand for the past week was flat, up 12,000 barrels per day (bpd) t 9.028 million bpd. The four-week average for gasoline demand remained 2.2 percent behind the same time last year.
“Motorists filling up their tanks this week were faced with a double whammy – excessive heat and rising gas prices,” said Martha M. Meade, Manager of Public and Government Affairs for AAA Mid-Atlantic. “As temperatures reached triple-digits in many areas, gas prices rose for the third straight week, a one-two punch as the summer driving season moves into its second half. Analysts continue to believe gas prices will remain below $4 per gallon in the near-term, barring any unforeseen natural or economic event, ranging from $3.50 to $3.75 over the next month.”
Oil prices may gain some clarity over the next few weeks as a number of issues start to be resolved. One of the first is the Greek debt crisis (a settlement was tentatively reach last week and proved to advance crude oil prices briefly above the $100/barrel mark.) The larger European sovereign debt issue remains, as well as resolution of the U.S. debt crisis, both of which will impact currency values and hence the price of oil. Also China used less crude oil in June than anytime in the past nine months but why this happened is the subject of some debate that may be clarified soon. China’s government has been raising interest rates to curb inflation and some argue this will lessen oil demand. Whether or not crude oil remains in its recent $90 to $100/barrel range remains to be seen, but some analysts believe only two things can knock the commodity out of this range – a hurricane headed to the U.S. Gulf Coast or August 2 comes and there’s no agreement on the U.S. debt ceiling.
Gas prices continue recent climb
Motorists had to dig a little deeper this week to fill up their tanks as gas prices rose for the second consecutive week, despite dropping more than 20 cents in the past eight weeks to the most recent low of $3.54 on June 30. The national average for regular grade gasoline rose to $3.67 Friday, up 8 cents from last week, yet 31 cents below their May 5 peak of $3.98/gallon. Three years ago this week gas prices reached an all-time record high of $4.11/gallon.
Economic worries hurt crude oil late-week following week-long volatility due to concerns about the U.S. deficit and Europe’s debt. After trading at over $98 a barrel mid-week on positive U.S. jobs and retail sales data, the commodity fell $2 Thursday following a warning from Moody’s Investors Service that it might strip the U.S. of its gold-plated credit rating if the $14.3 trillion limit on the country’s borrowing was not raised. S&P followed suite with a warning that it could cut the U.S.’s prized triple-A rating within the next 90 days if a deal is not struck. In addition to U.S. economic concerns, lingering worries about the euro zone’s debt crisis continued to keep investors cautious. Also this week, the Federal Reserve hinted more stimulus might be coming if the economy continues to weaken. Despite late-week losses, crude oil rose on Friday to close at $97.24, retaining a big portion of gains recouped after prices fell to four-month lows following the June 23 announcement from the International Energy Agency of a coordinate move to release 60 million barrels from members’ emergency reserves.
In its weekly report, the U.S. Energy Information Administration (EIA) data showed crude stocks dropped 3.1 million barrels to 355.5 million barrels. Gasoline stocks dropped 840,000 barrels to 211.7 million barrels. Gasoline demand fell 293,000 barrels per day (bpd) to 9.016 million (bpd), 140,000 bpd behind the same week last year.
“As the summer driving season approaches the mid-way point, motorists find themselves digging a little deeper when filling up at the pump as gas prices rose for the second straight week,” said Martha M. Meade, Manager of Public and Government Affairs for AAA Mid-Atlantic. “Yet prices remain 30 cents below the early-May peak and analysts caution (barring any unforeseen financial crisis or natural disaster) we are not headed to $4.00 per gallon gas prices this summer, but rather prices should remain below $3.75 per gallon through July and August.”
The EIA sees a deepening European debt crisis and slowing economic growth in China prompting reductions in forecasts for growth in global oil consumption. The top U.S. energy forecasting agency says it sees demand growing less than previously forecast this year and in 2012 due to a more moderate economic recovery and higher fuel prices. In its new monthly outlook, the EIA cut its forecast for 2011 world oil demand growth by 270,000 bpd to a 1.43 million bpd increase this year. Oil demand in 2012 will rise 1.58 million bpd, about 10,000 bpd lower than it forecast last month. OPEC also said world oil demand would grow more slowly in 2012 because of a fragile global economy and increased decline in consumption in Europe. The EIA expects regular-grade gasoline prices will average $3.62 per gallon and $3.51 per gallon over the third and fourth quarters of 2011.
