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.
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Chris Graham
