CRUDE OIL SLIPS TO LOWEST PRICE IN 7 WEEKS; RETAIL GASOLINE POSTS A NOMINAL INCREASE

Many analysts believe it was a strengthening dollar and massive crude oil supplies that led to crude oil’s closing last week at its lowest price in seven weeks. But at the same time, gasoline prices posted a penny-per-increase.

The supply and demand fundamentals for fuel reflect both massive crude stocks (up 6% versus this week in 2008) and gasoline stocks (up 23% over the same period in 2008) according to the U.S. Dept. of Energy. Gasoline consumption shows only a nominal increase from 8.93 million barrels per day (in the week ending Nov. 28, 2008) to 8.94 million barrels per day in the week ending Nov. 27, 2009. U.S. refinery output is meeting current demand even using just 79 percent of its available capacity. 

During the past week, the national average increased by 1 cent per gallon and in Florida, Georgia, and Tennessee; each state’s average price also increased by 1 cent per gallon respectively.

“Ordinarily, crude oil prices and retail gasoline prices move in the same direction,” said Gregg Laskoski, managing director of public relations, AAA Auto Club South. “The national average wholesale price closed each week in November between $2.02 and $2.05 per gallon and retail fuel prices reflected that but whether that price stability continues in December remains to be seen.”

Crude oil on the New York Mercantile Exchange (NYMEX) closed the week at $75.47 per barrel.

CURRENT AND PAST PRICE AVERAGES

Regular Unleaded Gasoline

                                    Current           Week Ago      Month Ago     Year Ago

National:                    $2.633            $2.629             $2.679               $1.751

Florida:                      $2.686            $2.676             $2.719              $1.805

Georgia:                     $2.516            $2.504             $2.547             $1.688

Tennessee:                 $2.502            $2.491             $2.534              $1.620

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.

How much are you paying for gasoline taxes in Florida/Georgia/Tennessee? Use this link: http://www.aaasouth.com/acs_news/gas_taxes.asp to find out.