For the second consecutive week, the U.S. average price for regular gasoline decreased, according to the Energy Information Administration. The national average slipped about four cents to $2.63 per gallon, $0.56 above the price a year ago. The West Coast average slipped a penny to $2.89 per gallon, while the price in California dropped two cents to $2.96 per gallon.
     Also dropping for the second week in a row, the national average price of diesel fuel fell a cent to $2.79 per gallon. The average is two cents per gallon below the price last year. The average in California decreased about a penny to $2.96 per gallon.  Despite the drops, the average on the West Coast was higher by $0.13 than a year ago.
     The EIA also reported gasoline demand at 170,000 gallons more than the week prior, perhaps indicating the start of holiday travel.  The American Automobile Association expects 38.4 million people will travel 50 miles or more during the four-day weekend.  This would represent a 1.4 percent increase compared to last year.
     Crude prices are maintaining just above $75.00 with a finish at $76.34 last week, down $1.06 from the week prior, and up from $57.18 the year prior. Investors holding stronger currencies can buy more dollar-based crude when the U.S. currency falls. 
     Although crude prices are higher, refiners' finished products remain low-priced due to weak demand, so refineries are cutting back.  The Associated Press reports that Friday Valero Energy became the latest to shut down a refinery, the largest U.S. facility shut down so far this year.  Other refiners, like Sunoco and Western Refining, have shut down plants in recent months and laid off almost 1,000 workers.

Chris Nobles
Commercial Fueling
Nella Oil Company