May 26, 2010
AAA FUEL GAUGE: WV Gasoline Prices Drop More Than Nine Cents
Special to Huntingtonnews.net
Motorists in West Virginia will have more cash to spend on their holiday preparations this week. Gasoline prices have dropped 9.3 cents a gallon on self-serve regular gasoline at the pump. The current average price is $2.769. The national average price is $2.780.
According to AAA’s Fuel Gauge, oil ended Monday. May 24 slightly higher after a day of choppy trading. Oil closed up 18 cents to end the day at $70.22 on the New York Mercantile Exchange.
Early May saw market oil prices hitting peaks north of $86 per barrel around May 3 before the European financial crisis emerged to weaken the euro against the dollar and dramatically drive down oil prices. A minor contributing factor for oil staying above $70 to open the week may be the result of some investors seeing sub-$70 oil as a good opportunity to buy, thereby slightly driving up the market price.
An inventory report from the Energy Information Administration issued last week revealed gasoline stocks fell by about 300,000 barrels – or about 12.6 million gallons, indicating increased gasoline consumption. However, also according to the EIA report, crude stockpiles grew by 200,000 barrels last week from the previous week. This latest expansion puts U.S. crude oil inventories at 362.7 million barrels and well above the average level for this time of year. In other words, oil inventories are growing faster than demand for oil, which can translate into downward pressure on prices.
Still looming in the background is the continuing saga of the European financial crisis and its impact on the value of the euro and the US dollar. As long as economic and budgetary uncertainty remains an issue in the euro zone, the euro will continue to be much weaker against the dollar than it has been in previous years. On Monday, the euro dipped in value to 1.24 dollars and is approaching a four year low against the dollar. A stronger dollar makes oil, which is priced in dollars, more expensive for investors using foreign currencies to buy, thereby driving down demand placing downward pressure on prices.
In response to the approximately $16 per barrel price drop market oil prices have seen thus far in May, retail gasoline prices are trending downward as well. On Monday, national average retail gasoline prices fell for the sixteenth consecutive day and now sit below $2.80 per gallon for the first time since the last day of March.
This week’s average prices: West Virginia Average . . . . . . . . . . . $2.769
Average price during the week of May 18, 2010 . . . . . . . . . . . . . . . $2.862
Average price during the week of May 26, 2009 . . . . . . . . . . . . . . . $2.474
The following is a list of the average price of unleaded self-serve gasoline in various areas:
$2.774 Bridgeport
$2.788 Clarksburg
$2.773 Huntington
$2.800 Martinsburg
$2.781 Morgantown
$2.788 Parkersburg
$2.740 Weirton
$2.712 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: WV Gasoline Prices Drop More Than Nine Cents
Special to Huntingtonnews.net
Motorists in West Virginia will have more cash to spend on their holiday preparations this week. Gasoline prices have dropped 9.3 cents a gallon on self-serve regular gasoline at the pump. The current average price is $2.769. The national average price is $2.780.
According to AAA’s Fuel Gauge, oil ended Monday. May 24 slightly higher after a day of choppy trading. Oil closed up 18 cents to end the day at $70.22 on the New York Mercantile Exchange.
Early May saw market oil prices hitting peaks north of $86 per barrel around May 3 before the European financial crisis emerged to weaken the euro against the dollar and dramatically drive down oil prices. A minor contributing factor for oil staying above $70 to open the week may be the result of some investors seeing sub-$70 oil as a good opportunity to buy, thereby slightly driving up the market price.
An inventory report from the Energy Information Administration issued last week revealed gasoline stocks fell by about 300,000 barrels – or about 12.6 million gallons, indicating increased gasoline consumption. However, also according to the EIA report, crude stockpiles grew by 200,000 barrels last week from the previous week. This latest expansion puts U.S. crude oil inventories at 362.7 million barrels and well above the average level for this time of year. In other words, oil inventories are growing faster than demand for oil, which can translate into downward pressure on prices.
Still looming in the background is the continuing saga of the European financial crisis and its impact on the value of the euro and the US dollar. As long as economic and budgetary uncertainty remains an issue in the euro zone, the euro will continue to be much weaker against the dollar than it has been in previous years. On Monday, the euro dipped in value to 1.24 dollars and is approaching a four year low against the dollar. A stronger dollar makes oil, which is priced in dollars, more expensive for investors using foreign currencies to buy, thereby driving down demand placing downward pressure on prices.
In response to the approximately $16 per barrel price drop market oil prices have seen thus far in May, retail gasoline prices are trending downward as well. On Monday, national average retail gasoline prices fell for the sixteenth consecutive day and now sit below $2.80 per gallon for the first time since the last day of March.
This week’s average prices: West Virginia Average . . . . . . . . . . . $2.769
Average price during the week of May 18, 2010 . . . . . . . . . . . . . . . $2.862
Average price during the week of May 26, 2009 . . . . . . . . . . . . . . . $2.474
The following is a list of the average price of unleaded self-serve gasoline in various areas:
$2.774 Bridgeport
$2.788 Clarksburg
$2.773 Huntington
$2.800 Martinsburg
$2.781 Morgantown
$2.788 Parkersburg
$2.740 Weirton
$2.712 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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