May 5, 2010
AAA FUEL GAUGE: More Than Four Cent Increase in WV Gasoline Prices
By Huntingtonnews.net Staff
The cost for a gallon of self-serve regular gasoline in West Virginia rose 4.3 cents this week. The current average price is $2.919. The national average price rose 4.6 cents to $2.904.
According to AAA’s Fuel Gauge, oil prices rose six cents on Monday, ending the day at $86.20 per barrel as data continued to reflect signs of economic recovery.
Much attention has been paid in recent days to the lingering and still developing aftermath of the massive oil spill in the Gulf of Mexico. Despite some initial media reports to the contrary, it does not appear the oil spill is responsible for the higher prices for the product seen on the markets over the last few days. Market watchers and analysts alike were initially concerned the loss of so much oil could potentially put upward pressure on prices in the short term, but that does not appear to be the case at this point in time.
With the increasing severity of the spill, several market and media sources have also floated the possibility the loss of the operation itself could lead to tighter oil supplies for the market as a whole in the short term. However, the leaked supply came from an exploratory well operation, meaning the oil itself was not being immediately counted on in the markets. Also, gasoline inventories are at their highest levels in about 17 years and demand remains stagnant. Therefore, the direct effect of the spill on supplies will likely be minimal.
One long term concern to follow, however, is the potential impact on price should the US government close shipping lanes in the area as part of cleanup efforts. As the situation continues to unfold, how shipping traffic and the delivery of oil and other products is affected by cleanup efforts will be key to the affect the spill has on oil prices.
What is undoubtedly driving oil prices in recent weeks is growing expectations of economic recovery in the US and abroad. News Monday that manufacturing activity in the US expanded in April, as did European manufacturing, bolstered investor confidence in the strength and pace of the global economic recovery. The better-than-expected manufacturing data suggests improved demand for oil may return in the months ahead and may support higher oil prices. Also, news from the US Commerce Department that personal spending in the US increased over half a percentage point lent further support to oil prices.
This week’s average prices: West Virginia Average . . . . . . . . . . . $2.919
Average price during the week of April 27, 2010 . . . . . . . . . . . . . . $2.876
Average price during the week of May 5, 2009 . . . . . . . . . . . . . . . . $2.137
The following is a list of the average price of unleaded self-serve gasoline in various areas:
$2.923 Bridgeport
$2.940 Clarksburg
$2.913 Huntington
$2.998 Martinsburg
$2.888 Morgantown
$2.875 Parkersburg
$2.901 Weirton
$2.905 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.
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AAA FUEL GAUGE: More Than Four Cent Increase in WV Gasoline Prices
By Huntingtonnews.net Staff
The cost for a gallon of self-serve regular gasoline in West Virginia rose 4.3 cents this week. The current average price is $2.919. The national average price rose 4.6 cents to $2.904.
According to AAA’s Fuel Gauge, oil prices rose six cents on Monday, ending the day at $86.20 per barrel as data continued to reflect signs of economic recovery.
Much attention has been paid in recent days to the lingering and still developing aftermath of the massive oil spill in the Gulf of Mexico. Despite some initial media reports to the contrary, it does not appear the oil spill is responsible for the higher prices for the product seen on the markets over the last few days. Market watchers and analysts alike were initially concerned the loss of so much oil could potentially put upward pressure on prices in the short term, but that does not appear to be the case at this point in time.
With the increasing severity of the spill, several market and media sources have also floated the possibility the loss of the operation itself could lead to tighter oil supplies for the market as a whole in the short term. However, the leaked supply came from an exploratory well operation, meaning the oil itself was not being immediately counted on in the markets. Also, gasoline inventories are at their highest levels in about 17 years and demand remains stagnant. Therefore, the direct effect of the spill on supplies will likely be minimal.
One long term concern to follow, however, is the potential impact on price should the US government close shipping lanes in the area as part of cleanup efforts. As the situation continues to unfold, how shipping traffic and the delivery of oil and other products is affected by cleanup efforts will be key to the affect the spill has on oil prices.
What is undoubtedly driving oil prices in recent weeks is growing expectations of economic recovery in the US and abroad. News Monday that manufacturing activity in the US expanded in April, as did European manufacturing, bolstered investor confidence in the strength and pace of the global economic recovery. The better-than-expected manufacturing data suggests improved demand for oil may return in the months ahead and may support higher oil prices. Also, news from the US Commerce Department that personal spending in the US increased over half a percentage point lent further support to oil prices.
This week’s average prices: West Virginia Average . . . . . . . . . . . $2.919
Average price during the week of April 27, 2010 . . . . . . . . . . . . . . $2.876
Average price during the week of May 5, 2009 . . . . . . . . . . . . . . . . $2.137
The following is a list of the average price of unleaded self-serve gasoline in various areas:
$2.923 Bridgeport
$2.940 Clarksburg
$2.913 Huntington
$2.998 Martinsburg
$2.888 Morgantown
$2.875 Parkersburg
$2.901 Weirton
$2.905 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.
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