Moving up a penny to $2.64 per gallon, the U.S. average price for regular gasoline increased for the first time in three weeks, according to the Energy Information Administration. The average was 75 cents more than the price a year ago. In the West Coast region, which includes Alaska, Arizona, California, Hawaii, Nevada, Oregon, and Washington, the average slipped a penny to $2.88 per gallon. The average in California dropped two cents to $2.94 per gallon.
     Although the national average price for diesel fuel slipped a fraction of a cent, it was relatively unchanged at $2.79 per gallon. The average is 12 cents per gallon higher than last year at this time. In the West Coast region, the average slipped a fraction of a cent, to remain essentially unchanged at $2.90 per gallon. The price in California dipped a penny to $2.95 per gallon.
     Since supply is a solid factor affecting fuel prices, the government monitors potential supply issues. As required under Section 804 of the Energy Independence and Security Act of 2007, scheduled oil refinery maintenance outages are reported to the EIA. The EIA then issues a report estimating the potential effect of the outages on fuel stocks. This year supplies of stored fuel are plentiful and refinery outages are not expected to impact consumers. Demand for petroleum products is low due to the poor economy, and increased use of ethanol as an oxygenate to promote cleaner burning of the fuel has reduced petroleum use even further.
     As we have seen, news stories can affect prices, too. On Wednesday, Dubai World, the city-state's largest corporate entity, asked for a six-month stay on the repayment of its debts. After this news caused a sharp intraday-loss on Friday, oil prices have now returned to the trading range that they have maintained since the middle of October.
     "Prices remain well entrenched in the $75-$80 a barrel band in the absence of any macroeconomic or financial discontinuity, with oil price volatility... having subsided significantly as the year has progressed," said Barclays Capital to investors, according to the Dow Jones Newswire today.
     Domestic crude oil today is priced at $76.28.

Chris Nobles
Commercial Fueling
Nella Oil Company