By Mark Huffman
ConsumerAffairs.com
August 7, 2009
Consumers are seeing the cost of gas at the pump climb nationwide,
as crude oil prices rose past $70 a barrel in the last two weeks. The
national average for self-serve regular today is $2.628 a gallon, up
11 cents from last Friday, according to AAA.
A month ago, motorists paid $2.593 a gallon at the pump.
Hawaii continues to have the most expensive gas in the nation, with an average price of $3.17 a gallon. South Carolina's gas is the cheapest, with an average price of $2.408 a gallon.
The average price of gas in California has crept past $3 a gallon for the first time in several weeks, with a statewide average of $3.008 a gallon. The high was recorded in San Francisco, with an average price of $3.09 a gallon. Yuba City had the low, at $2.899 a gallon.
Gasoline prices have followed oil prices higher in recent weeks, with crude rising on increasing signs the economy may soon improve, leading to a demand for more energy. At the same time, the U.S. dollar has been losing value.
"Not only has the dollar weakened against foreign currencies significantly over the past week, but there is every reason to believe the trend will continue in the short term," said Andrew Delmege, AAA's manager of regulatory affairs. "A weakened dollar makes oil, which is traded in dollars, cheaper for buyers using other currencies and tends to drive up the market price. It also makes oil more expensive for those who buy it with dollars."
Oil prices gave up some recent gains at the end of the week after the U.S. Energy Information Administration reported that U.S. crude oil supplies rose by 1.7 million barrels during the week ended July 31. The EIA also said that gasoline stocks fell by 200,000 barrels, a smaller than expected decline. Inventories of both remain at near record highs.
Light sweet crude for September delivery fell to $71.21 a barrel Thursday on the New York Mercantile Exchange.
