By Mark Huffman
ConsumerAffairs.com
August 21, 2009
There hasn't been much change in the price of gasoline in the last
seven days, with AAA reporting that the national average of
self-service regular today is $2.625 a gallon. That's down from $2.647
last Friday.
The average price of diesel fuel is $2.685 a gallon, up less than a penny in the last week.
Hawaii, Alaska and California are the only three states where the statewide average gasoline price exceeds $3 a gallon. The average price is $3.253 in Hawaii, $3.236 in Alaska and $3.049 in California.
In California, the most expensive metro remains San Francisco, where the average gas price is $3.139 a gallon. The cheapest place to fill up in California today is in Yuba City, where the average gas price is $2.964.
South Carolina remains the cheapest place to buy gas today, with a statewide average price of $2.399 a gallon. Missouri is next at $2.425, followed by Oklahoma at $2.480.
"Given the depth and severity of the current recession, the preponderance of economic data seems to suggest economic activity will remain slow for some time. If this is the case, oil prices will likely remain within their current $60-80 price range through the end of summer and into early fall," said Andrew Delmege, AAA manager of regulatory affairs. "As a result, retail gasoline prices will continue to hover around their current levels as motorists wind down the summer driving season."
Oil prices have moved higher this week following a surprising report from the U.S. Energy Information Administration, showing that U.S. crude oil supplies had dropped dramatically in the last week. The surprising draw-down is an indicator of an unexpected boost in demand.
U.S. crude oil stockpiles fell by 8.4 million barrels from the previous week - much greater than the 1.1 million barrels analysts expected. However, inventories remain higher than usual for this time of year.
Supplies of gasoline dropped by 2.1 million barrels in the last week, mostly in line with expectations. Delmege said it remains to be seen if this tightening of supply is caused by a recovering economy, but concedes a growth in demand would ultimately impact consumers at the pump.
"A rapid recovery would likely lead to a strong swing in demand for petroleum products and thusly higher prices," he said. "That said, given the state of the global economy and the dramatic changes that have taken place in the markets since the initial plunge in 2008, a swift, robust recovery is unlikely."
