Gas Prices Holding Within Pennies as Crude Oil Prices Dip

HAMILTON– Many motorists have their minds on hope for an improved economic picture and stable energy and gas prices as a new President is inaugurated this week in Washington, D.C.
Gas prices moved up a few pennies this week. The national average started the week at $1.79 Monday and Friday reached $1.82 gallon. The small increases at the pump came as crude oil prices fell this week, closing at $36.51 a barrel on Friday. One year ago, crude oil was selling at $90+ a barrel.
Seasonal demand for gasoline is at it slowest point of the year right now with typical demand dips in January and February. Many refineries have cut gasoline production.
“We are in the ‘cocooning’ season when motorists drive less in winter so demand for gas will likely fall even further,” said David Weinstein, Manager of Public and Government Affairs, AAA Mid-Atlantic. “Lower crude oil prices plus lower demand may not equal lower gas prices if refineries cut back on production. AAA urges refiners to maintain production levels – which will help consumers when they need it most.”
Demand for diesel fuel has plunged, according to the Energy Information Administration, which signals further economic distress.
The American Petroleum Institute issued its 2008 demand results this week, saying that overall demand for oil dropped in 2008 by six-percent, the largest percentage of decline since 1980 and gasoline demand dropped by 3.3 percent. API also said that oil refiners increased their refining capacity in 2008, but overall utilization rates were less than 85%. The International Energy Agency also predicted this week that global demand for oil will fall again in 2009, following a decline in 2008.

CURRENT AND PAST GAS PRICE AVERAGES

Regular Unleaded Gasoline (*indicates record high)