Weak Dollar, Higher Crude Oil Prices Despite Ample Supply

Crude oil futures on the New York Mercantile Exchange closed the week $3 per barrel higher than last week’s close, but the supply and demand fundamentals for both oil and gasoline are still expected to keep retail gasoline prices edging lower.The U.S. Dept. of Energy reported last week that gasoline inventories rose 547,000 barrels to 207 million, 4 percent greater than the average for this time of year.   Refineries are expected to shut down some operating capacity for scheduled repairs before heating oil consumption increases.

The national average price of unleaded regular gasoline is $2.55, down 2 cents per gallon in the past week. Florida’s average today at $2.47, Georgia’s at $2.33 and Tennessee’s average price also at $2.33 per gallon are all down by 3 cents, 2 cents, and 3 cents respectively in the past week.

“Even though the Dollar weakened against the Euro and analysts say that decline was the momentum for investment into crude oil and other commodities, this is a rare time when such speculative investment is not expected to create upward momentum for gasoline prices,” said Gregg Laskoski, managing director of public relations, AAA Auto Club South.

 

This time of year gives refineries an opportunity to address necessary repairs without having a measurable impact on gasoline output because consumer demand generally declines in late September and early October,” said Laskoski. “At the same time, refineries will be preparing to flush out the “summer blend” of fuel and begin production of the “winter blend” which costs less to produce because it requires fewer additives.”

 

Crude oil on the New York Mercantile Exchange (NYMEX) closed Friday at $72.04 per barrel.

 

 

CURRENT AND PAST PRICE AVERAGES

Regular Unleaded Gasoline

 

                                    Current           Week Ago      Month Ago     Year Ago

National:                     $2.551             $2.573             $2.625             $3.777

Florida:                       $2.477             $2.509             $2.610             $3.816

Georgia:                     $2.338             $2.356             $2.471             $4.014

Tennessee:                 $2.335             $2.360             $2.469             $3.887

 

AAA’s Daily Fuel Gauge Report (fuelgaugereport.com) is updated each day and is the most comprehensive; reflecting actual prices from credit card transactions within the past 24 hours at two-thirds (100,000 stations) of the gasoline stations in the U.S. Its accuracy is unparalleled.