After weeks of steady declines, gas prices stabilized this week with slight increases and decreases in various parts of the country. Stability of crude oil in recent weeks is catching up to gas prices. The national average price for regular grade gasoline was $2.72 a gallon Friday, merely 3 cents higher than year ago prices, but still $1.39 less than the record of $4.11 set in July 2008.
After sharp gains that sent prices to the $77 a barrel mark mid-week, crude oil prices slipped on Friday in response to signs that economic growth in the U.S. and China, the world’s top two energy consumers, may not be as rapid as expected. An increase in U.S. jobless claims and news from China that the country’s economic growth is expected to slow in the second half of the year halted oil’s gains by week’s end. Crude oil closed the week at $77.18 Friday, up almost 20% since hitting an intra-day low of almost $64 on May 20 and 11% below a 19-month intra-day high above $87 hit on May 3.
In its weekly report the Energy Information Administration’s (EIA) data showed crude oil rose 1.7 million barrels to 363.1 million barrels, contrary to the forecasted 1.2 million barrel drop. Gasoline stocks fell 700,000 barrels to 226 million barrels, against expectations for a small increase. The EIA also reported overall oil product demand was up 1.9% in the past four weeks from a year ago, yet gasoline demand was down 0.2% over the same period.
The Weekend
“Although we aren’t seeing the dramatic declines seen in past weeks, gas prices remain stable,” said Tracy E. Noble, Manager of Public and Government Affairs for AAA Mid-Atlantic. “Considering the magnitude of the oil spill in the Gulf of Mexico, stability at the pump, at least in the short term, continues to be good news for motorists looking to take to the road for the weekend or extended summer vacations.”
The Week Ahead
Containment and clean up of the Deepwater Horizon oil spill in the Gulf of Mexico continues to be at the forefront of the national news. However questions remain regarding the overall size and potential reach of the spill. As of yet, neither the spill, or the six-month moratorium on deep water drilling by the Obama Administration have impacted oil prices in the short term, although analysts and investors will continue to monitor the situation as the summer progresses.
CURRENT AND PAST GAS PRICE AVERAGES
Regular Unleaded Gasoline (*indicates record high)
06/18/10 | Week Ago | Year Ago | |
National | $2.72 | $2.70 | $2.69 |
New Jersey | $2.59 | $2.60 | $2.56 |
Trenton | $2.62 | $2.63 | $2.58 |
Cape May County | $2.56 | $2.57 | $2.53 |
Burlington County | $2.53 | $2.54 | $2.53 |
Middlesex, Somerset, Hunterdon | $2.60 | $2.61 | $2.56 |
Monmouth, Ocean Counties | $2.58 | $2.58 | $2.56 |
Crude Oil | $77.18 per barrel (close on Friday) | $73.78 per barrel | $50 per barrel |
