The Energy Information Administration reported that at $2.86 per gallon, the U.S. average price for regular gasoline was virtually unchanged from last week and was 80 cents above last year at this time. The West Coast (Alaska, Arizona, California, Hawaii, Nevada, Oregon, Washington) price remained essentially unchanged at $3.06 per gallon and the average in California dipped almost a cent to $3.09 per gallon.
     The U.S. average price for diesel fuel increased half a cent but remained at $3.07 per gallon, 85 cents above last year. The West Coast average moved up less than two cents to $3.20 per gallon, while the average in California inched up nearly a penny to $3.23 per gallon.
     Crude oil rose $1.42 per barrel Friday to $85.12, which put it $1.88 above the previous Friday settlement. Experts say that the current economics would appear to dictate that crude oil remain around $70 per barrel. They speculate that crude prices were much higher last week due to continued investment from financial speculators as well as a rise in new home sales, hopeful figures for durable goods orders and perhaps worries last week of Mideast violence. In sum, they surmise, oil's attractiveness as an asset play or inflation hedge could continue to outweigh oversupplied markets.
     That being said, with prices above $80 per barrel and the economy still recovering, experts are talking of a tipping point - where high oil prices may negatively impact manufacturers and consumers and slow economic recovery.

Chris Nobles
Commercial Fueling
Nella Oil Company