Last week the U.S. average price for regular gasoline dropped for the eighth consecutive week, dipping three cents to $2.47 per gallon for a total reduction of 18 cents over the eight weeks. The national average was $1.02 below a year ago. Prices fell in all regions of the country.  The price on the West Coast slipped four cents to $2.95 per gallon, and in California, the average decreased three cents to $3.07 per gallon.
     Diesel prices also declined in all regions of the country, with the national average dropping two cents to $2.58 per gallon, $1.29 less than last year. On the West Coast, the average slipped two cents to $2.72 per gallon. California's price slipped about two cents to $2.79 per gallon.
     News reports have surfaced again that some Gulf Arab states are seeking to move toward trading oil in currencies other than the U.S. Dollar.  Major oil producing nations denied these talks, but crude oil prices gained, regardless.  Experts maintain that any change in oil pricing would likely be years away. 
     For now, the weak dollar is the only bullish factor currently available to the oil market as the crude supply continues to be plentiful, even though OPEC members are reportedly producing less than at this time last year.  Recent cuts at refineries due to maintenance and to poor economics are expected to decrease output slightly. Seasonal considerations would also favor some run reductions as refinery activity has tended to drop during this particular week with the exception of those years following hurricanes when activity has been rebounding.  Runs would be reduced during a time when there is likely to be an upswing in crude imports during the coming weeks.  This might improve economics for the refiners to increase production again.

Chris Nobles
Commercial Fueling
NELLA Oil Company