Current Gas Prices Are 83 Cents Higher Than A Year Ago

Although gas prices remained steady for most of April, the national average price for regular grade gasoline reached a new 18-month high Friday at $2.88 a gallon. Prices began the month at $2.80 a gallon and gained 8 cents (3%) over the past 30 days. Current prices are 83 cents higher than a year ago, but still $1.23 less than the record high set in July 2008.
After trading below $82 a barrel earlier in the week, crude oil rose on Friday to its third straight monthly gain (2.5%), despite bulging U.S. oil inventories, Greece’s financial troubles, Iceland’s volcanic eruption, a lawsuit against Goldman Sachs and pending government regulation of financial markets. Crude’s late week advances were driven by expectations of global economic recovery, in particular the hopes of a bailout package to help Greece avoid debt default, to closed the week at $86.15 Friday.
In its weekly report, the Energy Information Association (EIA) showed crude stocks rose 1.9 million barrels to 357.8 million barrels. These gains marked the fifth consecutive week crude inventories have been above 350 million barrels, the longest stretch above 350 million barrels since May-June 2009. Gasoline stocks fell 1.2 million barrels to 225.7 million barrels. The EIA also reported gasoline demand rose by 138,000 barrels per day (bpd), which some analysts believe might be the last peak until late May.
The Weekend
“Stability at the gas pumps at a time when prices tend to spike has been welcome news for motorists this April,” said Tracy E. Noble, Manager of Public and Government Affairs for AAA Mid-Atlantic. “With the official start of the summer driving season less than four weeks away, motorists are holding their collective breath with the hope that gas prices may not reach the pivotal $3.00 a gallon mark this summer as some analysts believe might be the case.”
The Week Ahead
A massive oil spill in the Gulf of Mexico will be a major concern in the week ahead, and perhaps months to come. The leak from a blow-out BP oil well on the ocean floor of the coast of Louisiana, threatening to eclipse the Exxon Valdez disaster, is pouring out crude oil at the rate up to 5,000 barrels a day, much more then originally thought. The Mississippi is a major shipping channel for U.S. grains and foreign crude oil, and so far there have been no reports of disruptions. The Louisiana Offshore Oil Port, which, handles more than one million barrels a day of crude imports and is connected by pipeline to the biggest U.S. refining region, said it did not expect any effect on its operations. While no disruptions have occurred yet, oil traders are bracing for potential freight restrictions that could curtail crude oil imports to the nation’s refining hub.

CURRENT AND PAST GAS PRICE AVERAGES

Regular Unleaded Gasoline (*indicates record high)