Fuel Trends

On Monday, oil prices rose above $102 a barrel for the first time since mid-November, riding on hopes that European leaders will save the eurozone economy. While a recession may be inevitable in Europe, the proposal for tighter spending controls and balanced budgets is viewed as an important step in securing the euro and widespread bank failures. The move was hailed by investors, pushing stocks and the euro higher.

Meanwhile, the U.S. government reported a drop in factory orders in October, suggesting the economy has yet to make significant headway in its economic recovery. This can be seen in the drop in retail prices this week, due largely to the high unemployment rate.

While unemployment reportedly dropped, analysts chalk this up to the tens of thousands that have given up looking for jobs. The reduced job force results in lower fuel consumption, driving retail prices lower overall.

Although retail fuel prices have declined as of late, they are still markedly higher than they were this time last year. On average, prices are up to $.35 higher per gallon.