At the national level, the price for regular gasoline dipped a penny to $2.85 per gallon but was 80 cents above last year, according to the Energy Information Administration. Although the average on the West Coast (Alaska, Arizona, California, Hawaii, Nevada, Oregon, Washington) dropped slightly, the change was so small that the price remained at $3.06 per gallon. The average in California remained at $3.09 per gallon following a slight decrease.
     The U.S. average price for diesel fuel increased nearly a half cent to $3.08 per gallon, 88 cents above a year ago. The average in the West Coast region increased about a penny to $3.21 per gallon, while the average in California was essentially unchanged at $3.23 per gallon.
     Two items in the news last week are expected to have some upward impact on financial markets, including energy. The Department of Commerce reported that the "real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 3.2 percent in the first quarter of 2010." While this was less of an increase than over the previous period, it may indicate some traction for economic recovery. The other potentially influential item is that the Greek bailout package could be finalized by the weekend.
     The Oil Price Information Service notes other factors that should allow prices to stay down. The spring U.S. gasoline market is characterized by modest consumption, increased ethanol use, high availability of imports, and high gasoline inventories. Even with refinery closures, these factors combine to provide ample supply after refinery outages are considered.
     In summary, they say, U.S refineries should be able to meet supply needs through June, with only a minimal potential for significant price impacts due to planned outages.
     Domestic crude oil was up 98 cents per barrel Friday to close at $86.15.

Chris Nobles
Commercial Fueling
Nella Oil Company