The U.S. average retail price for regular gasoline gained 2 cents last week to reach $2.694 per gallon, the highest level this year. This surpassed the previous 2009 weekly high of $2.691 per gallon seen on June 22. The national average is now 29 cents per gallon higher than it was a year ago. Prices increased in all regions of the country last week. The price rose a bit over two cents in the West Coast region. Prices ranged from a low of $2.56 in the Gulf Coast to a high of $2.91 in the West Coast. The average in California was essentially unchanged at $2.99 per gallon.
     The national average price of diesel fuel inched up about a penny to $2.81 per gallon. Despite a cumulative increase over the past four weeks of 23 cents per gallon, the average remains 28 cents per gallon below a year ago. Prices increased in most regions of the country. The West Coast price edged up about a penny to $2.91 per gallon. In California, the average rose about a penny to $2.97 per gallon.
     Experts say that gasoline prices may have reached their cost-based peak relative to crude oil prices.  If crude oil remains in the $80.00 range, then gasoline prices should not fluctuate too far from current levels.  Commodities market analysts note reluctance above $80/bbl for crude oil as investors move in and out of commodity assets.
     Petroleum prices were pushed higher last week by Department of Energy data that showed stock draws for products and crude, and exceptionally low crude oil imports. Energy Information Administration data is by no means constructive to higher prices across the board, however.  The rest of the world may indeed be seeing a demand recovery but the U.S. is still in the energy demand doldrums.

Chris Nobles

Commercial Fueling