Dec. 9, 2009
AAA FUEL GAUGE: WV Gasoline Prices Continue to Hold Steady
Special to Huntingtonnews.net
West Virginia’s average price for a gallon of regular, unleaded gasoline held steady for the third consecutive week. Currently, this week’s price at the pump is $2.668 a gallon. The national average price at the pump is $2.634 a gallon.
According to the AAA Fuel Gauge, spurred by comments by Federal Reserve Chairman Ben Bernanke suggesting the economy will likely take a slow road to recovery -- and by a stronger US dollar -- oil prices fell $1.56 to close at $73.91 per barrel Monday on the New York Mercantile Exchange. The comments by Chairman Bernanke were seen by investors to suggest a longer, slower recovery would mean oil and gasoline demand won’t spike in the short term, which would help moderate prices.
The strength of the US dollar continues to play a major role in daily fluctuations of oil prices. When the dollar showed particular weakness against other currencies in the early fall, the price of oil hit and breached $80 per barrel. Today, the dollar traded higher than it has for about a month and oil prices responded by falling steeply. Oil, being priced in dollars, becomes cheaper for investors using foreign currencies like the euro to buy when the dollar loses value. As a result, foreign investors using stronger currencies can buy more oil driving up the market price.
The gap between oil prices and retail gasoline prices has been largely dollar driven. Oil prices, which are directly influenced by dollar strength, respond daily to changes in the currency’s value. Retail gasoline prices, which are being cushioned by still very large supplies and relatively tepid demand, are not nearly as responsive to changes in the dollar’s value.
OPEC will meet later this month to discuss oil output from the oil cartel’s member nations. The group is unlikely to change oil production levels.
This week’s average prices: West Virginia Average . . . . . . . . . . $2.668
Average price during the week of December 1, 2009 . . . . . . . . . $2.671
Average price during the week of December 9, 2008 . . . . . . . . . . . $1.800
The following is a list of the average price of unleaded self-serve gasoline in various areas:
$2.631 Bridgeport
$2.642 Clarksburg
$2.598 Huntington
$2.668 Martinsburg
$2.762 Morgantown
$2.631 Parkersburg
$2.705 Weirton
$2.707 Wheeling
AAA East Central is a not-for-profit association with 80 local offices in Pennsylvania, West Virginia, Ohio, New York and Kentucky servicing 2.5 million members.
Share This Story:
Make HNN Your Homepage (IE Users Only)
AAA FUEL GAUGE: WV Gasoline Prices Continue to Hold Steady
Special to Huntingtonnews.net
West Virginia’s average price for a gallon of regular, unleaded gasoline held steady for the third consecutive week. Currently, this week’s price at the pump is $2.668 a gallon. The national average price at the pump is $2.634 a gallon.
According to the AAA Fuel Gauge, spurred by comments by Federal Reserve Chairman Ben Bernanke suggesting the economy will likely take a slow road to recovery -- and by a stronger US dollar -- oil prices fell $1.56 to close at $73.91 per barrel Monday on the New York Mercantile Exchange. The comments by Chairman Bernanke were seen by investors to suggest a longer, slower recovery would mean oil and gasoline demand won’t spike in the short term, which would help moderate prices.
The strength of the US dollar continues to play a major role in daily fluctuations of oil prices. When the dollar showed particular weakness against other currencies in the early fall, the price of oil hit and breached $80 per barrel. Today, the dollar traded higher than it has for about a month and oil prices responded by falling steeply. Oil, being priced in dollars, becomes cheaper for investors using foreign currencies like the euro to buy when the dollar loses value. As a result, foreign investors using stronger currencies can buy more oil driving up the market price.
The gap between oil prices and retail gasoline prices has been largely dollar driven. Oil prices, which are directly influenced by dollar strength, respond daily to changes in the currency’s value. Retail gasoline prices, which are being cushioned by still very large supplies and relatively tepid demand, are not nearly as responsive to changes in the dollar’s value.
OPEC will meet later this month to discuss oil output from the oil cartel’s member nations. The group is unlikely to change oil production levels.
This week’s average prices: West Virginia Average . . . . . . . . . . $2.668
Average price during the week of December 1, 2009 . . . . . . . . . $2.671
Average price during the week of December 9, 2008 . . . . . . . . . . . $1.800
The following is a list of the average price of unleaded self-serve gasoline in various areas:
$2.631 Bridgeport
$2.642 Clarksburg
$2.598 Huntington
$2.668 Martinsburg
$2.762 Morgantown
$2.631 Parkersburg
$2.705 Weirton
$2.707 Wheeling
AAA East Central is a not-for-profit association with 80 local offices in Pennsylvania, West Virginia, Ohio, New York and Kentucky servicing 2.5 million members.
Share This Story:
Make HNN Your Homepage (IE Users Only)
