Crude oil continued to flirt with the $90 a barrel mark this week and gas prices, as they typically do, followed suit with slight increases throughout the week. Will this trend continue with less than two weeks to go until the Thanksgiving holiday? The national average price of regular grade gasoline was $2.88 Friday, up 6 cents from last week, 8 cents this month and 23 cents above year-ago prices. However, for the 26th consecutive week (more than half the year) gas prices have remained below $2.90 and they remain $1.23 below 2008 record highs.
Although the U.S. dollar remains weak and continues to be the main contributor to crude oil’s recent gains, crude oil dropped on Friday triggered by a stronger U.S. dollar and rumors of an interest rate hike in China. Crude oil closed the week at $84.74 Friday, a 3% loss on the week. Some analysts believe crude oil prices are on course to test the $90 a barrel mark in the coming days and then retreat shortly thereafter.
In its weekly report, the U.S. Energy Information Administration (EIA) announced crude oil stocks dropped 3.3 million barrels to 364.9 million barrels, although current levels are 27 million barrels above last year and 53 million barrels above 2008 levels. Gasoline stocks dropped 1.9 million barrels to 210.3 million barrels.
The Weekend
“Motorists have undoubtedly noticed the recent increase in prices at the pump,” said Tracy Noble, spokesperson for AAA Mid-Atlantic. “Crude oil is the single biggest factor in the price of gasoline, so as crude oil continues to push toward $90 a barrel, gas prices will continue to follow suit.”
The Week Ahead
The EIA’s Short-Term Energy Outlook expects crude oil will average $83 a barrel this winter (October 1 to March 31), a $5.50-per-barrel increase over last winter. The same report also noted that gasoline prices will average $2.84 a gallon this winter, up 19 cents per gallon higher than last winter.
CURRENT AND PAST GAS PRICE AVERAGES
Regular Unleaded Gasoline (*indicates record high)
11//10 | Week Ago | Year Ago | |
National | $2.88 | $2.82 | $2.65 |
New Jersey | $2.78 | $2.73 | $2.53 |
Trenton | $2.81 | $2.77 | $2.56 |
Cape May County | $2.77 | $2.71 | $2.51 |
Burlington County | $2.76 | $2.69 | $2.50 |
Middlesex, Somerset, Hunterdon | $2.79 | $2.74 | $2.54 |
Monmouth, Ocean Counties | $2.77 | $2.72 | $2.52 |
Crude Oil | $84.74 per barrel (close on Friday) | $87.40 per barrel | $79.00 per barrel |
