Oct. 20, 2010
AAA FUEL GAUGE: West Virginia Gasoline Prices Increase More Than 3 Cents
Special to Huntingtonnews.net
West Virginia’s autumn leaves may be falling but gas prices are not. This week, the average price for a gallon of self-serve, regular unleaded gasoline increased 3.2 cents to $2.871 at the pump.
According to AAA’s Fuel Gauge, after starting off sluggish at the opening of formal trading on the NYMEX, crude oil pushed higher Monday settling at $83.08—up $1.70 on the day.
Consistent with the trend throughout the year, crude followed similar gains of all three major stock indexes, rose steadily throughout the day. Uncharacteristically, the increase in crude did not reflect a bounce in the US dollar which rebounded from a 10-month low against a basket of currencies. Normally we would expect such a rise in the value of the dollar to drive crude prices lower as it makes oil more expensive to purchase for those holding foreign currencies.
Analysts attribute this unusual response to the ongoing labor dispute occurring at French refineries and ports. French workers are heading into their second week of striking at the nation’s twelve refineries resulting in potential fuel supply disruptions—a concern that is reflected in current crude product prices. While the Organization of Petroleum Exporting Countries (OPEC) and US factors are often primarily cited in analysis of the crude market, this should serve as a reminder of the influence that geopolitical events can have.
As expected, OPEC, which met last week in Vienna, Austria, agreed to maintain current levels of crude production. Crude has held higher than $80 for the last twelve trading days largely buoyed by massive amounts of investor money flowing into oil and other commodities triggered by a weak US dollar.
Following US Federal Reserve Chairman Bernanke’s indication that additional monetary stimulus was on the way, the dollar rebounded against the euro. At the same time, sluggish demand, record high fuel inventories, and mixed signals about the short-term economic health of the recovery are also acting to keep prices in check. Some positive economic signs emerged this week, however, as confidence among US homebuilders rose in October to its highest level in four months.
Despite the history of gas prices dropping following the Labor Day holiday, consumers continued to see a slight rise in pump prices with national averages up 1.8 cents on the week and 9.8 cents on the month. Today, the national retail average for a gallon of self serve regular gasoline is $2.829.
This week’s average prices: West Virginia Average $2.871 Average price during the week of October 12, 2010 $2.839 Average price during the week of October 18, 2009 $2.619
The following is a list of the average price of unleaded self-serve gasoline in various areas:
$2.898 Bridgeport
$2.893 Clarksburg
$2.896 Huntington
$2.896 Martinsburg
$2.851 Morgantown
$2.890 Parkersburg
$2.792 Weirton
$2.853 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: West Virginia Gasoline Prices Increase More Than 3 Cents
Special to Huntingtonnews.net
West Virginia’s autumn leaves may be falling but gas prices are not. This week, the average price for a gallon of self-serve, regular unleaded gasoline increased 3.2 cents to $2.871 at the pump.
According to AAA’s Fuel Gauge, after starting off sluggish at the opening of formal trading on the NYMEX, crude oil pushed higher Monday settling at $83.08—up $1.70 on the day.
Consistent with the trend throughout the year, crude followed similar gains of all three major stock indexes, rose steadily throughout the day. Uncharacteristically, the increase in crude did not reflect a bounce in the US dollar which rebounded from a 10-month low against a basket of currencies. Normally we would expect such a rise in the value of the dollar to drive crude prices lower as it makes oil more expensive to purchase for those holding foreign currencies.
Analysts attribute this unusual response to the ongoing labor dispute occurring at French refineries and ports. French workers are heading into their second week of striking at the nation’s twelve refineries resulting in potential fuel supply disruptions—a concern that is reflected in current crude product prices. While the Organization of Petroleum Exporting Countries (OPEC) and US factors are often primarily cited in analysis of the crude market, this should serve as a reminder of the influence that geopolitical events can have.
As expected, OPEC, which met last week in Vienna, Austria, agreed to maintain current levels of crude production. Crude has held higher than $80 for the last twelve trading days largely buoyed by massive amounts of investor money flowing into oil and other commodities triggered by a weak US dollar.
Following US Federal Reserve Chairman Bernanke’s indication that additional monetary stimulus was on the way, the dollar rebounded against the euro. At the same time, sluggish demand, record high fuel inventories, and mixed signals about the short-term economic health of the recovery are also acting to keep prices in check. Some positive economic signs emerged this week, however, as confidence among US homebuilders rose in October to its highest level in four months.
Despite the history of gas prices dropping following the Labor Day holiday, consumers continued to see a slight rise in pump prices with national averages up 1.8 cents on the week and 9.8 cents on the month. Today, the national retail average for a gallon of self serve regular gasoline is $2.829.
This week’s average prices: West Virginia Average $2.871 Average price during the week of October 12, 2010 $2.839 Average price during the week of October 18, 2009 $2.619
The following is a list of the average price of unleaded self-serve gasoline in various areas:
$2.898 Bridgeport
$2.893 Clarksburg
$2.896 Huntington
$2.896 Martinsburg
$2.851 Morgantown
$2.890 Parkersburg
$2.792 Weirton
$2.853 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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