The U.S. average price for regular gasoline jumped nearly nine cents to $2.57 per gallon last week. Even with the increase, that price remained 34 cents below a year ago and $1.54 less than the all-time high price set on July 7, 2008.  While the rest of the country was up in gasoline prices, the West Coast was down. The price dipped more than two cents to $2.87 per gallon. The average in California also fell, dropping three cents to $2.99 per gallon.
     The national average price of diesel fuel increased nearly 11 cents to $2.71 per gallon but remained $0.78 below last year and $2.06 below the all-time high price set on July 14, 2008. On the West Coast, the average for diesel increased nine cents to $2.82 per gallon and the price in California jumped eight cents to $2.87 per gallon.
     Gasoline supplies have declined slightly over the last two weeks, perhaps due to cuts in refinery runs. One news story last week reported that the refinery production rate was at 80.9 percent of capacity.  Refineries might be reducing output in an effort to support gasoline prices. When crude prices are up and gasoline prices are down, refinery profits diminish or disappear. 
     Experts seem to agree that there was no sound economic reason for the prices of different grades of crude to close last week at $74.58 and $78.54.  They cite the weak U.S. dollar as responsible for driving more investment money into commodities such as oil.  Experts are still predicting a high crude price of around $84.00, which would push gasoline prices upward.  This is in spite of the fact that stored crude supplies are maintaining almost two million barrels higher than a month ago and 28 million barrels than a year ago, and that consumption remains down.  The Energy Information Administration estimates that there is almost 24 days of crude oil supply in storage.  This represents two days more than at this time last year, and should, in theory, weaken prices.  In the same week, however, domestic crude rose in price more than $6.00.
 
Chris Nobles
Commercial Fueling
NELLA Oil Company