GAS PRICES: Gasoline and crude oil reach highest prices in six months
STAFF REPORT • MAY 11, 2009
After several weeks of virtually unchanged prices at the pump, this week gas prices jumped 12 cents (6 percent) over last week. The average U.S. retail price for regular grade gasoline reached $2.17 on Friday, marking the sixth consecutive week and the sixth time since November 17 gasoline has been above $2.00 per gallon. Although this is a significant one-week increase, the price is still 47 percent below the record price of $4.114 set on July 11, 2008.
After remaining relatively stable for several weeks, crude oil saw significant increases in trading this week as prices flirted with $60 per barrel, trading as high as $58.57 a barrel Thursday. Crude oil settled at $58.63 at the close of trading Friday, the highest settlement since November 14, yet still nearly 50 percent below a year ago. Oil prices have risen more than 10 percent in two weeks and more than 70 percent, due in part to evidence that the global recession is easing, which would lead to a rebound in world oil consumption. Crude oil has gained more than 70 percent since hitting $33.55 in February.
Supply continues to outpace demand. This week the Department of Energy (DOE) reported that U.S. oil inventories grew less than expected, 600,000 barrels rather than the expected 2.2 million barrels, suggesting crude oil demand may be stabilizing. U.S. inventories are at 19-year high of 375.3 million barrels.
quoted from Del Marva Media Group
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