The Energy Information Administration reports that the U.S. average price for regular gasoline increased a fraction of a cent, essentially remaining at $2.72 per gallon, 26 cents higher than one year prior. On the West Coast, the average increased about two cents to $3.06 per gallon. The average in California went up almost two cents to $3.13 per gallon.
     The national average price for diesel fuel decreased for a fourth consecutive week. The price drop was so small that the price remains unchanged at $2.90 per gallon, 40 cents higher than a year ago. The largest decline took place on the West Coast, consisting of Alaska, Arizona, California, Hawaii, Nevada, Oregon, and Washington, where the average dropped a penny and a half to $3.04 per gallon. The diesel average in California dropped less than a penny to stay at $3.12 per gallon.
     CNNMoney.com reported that oil rose to its highest level in three weeks on Wednesday, nearing $78 a barrel, and attributed the rise to signs of growing Chinese demand for energy and a cheerier Wall Street boosted prices. Weather activity contributed to the prices, too, as Tropical Storm Bonnie was named on Thursday afternoon, causing prices to squeeze upward in response to the storm's projected trajectory toward Texas or Louisiana coastlines. Prices receded after the storm spared the region.
     Chairman of the Federal Reserve, Ben Bernanke, delivered a gloomier economic outlook than predicted. In his semi-annual address to the congress, he said the U.S. economy appears "unusually uncertain" and that interest rates would remain near zero for "an extended period" of time.
     The Energy Information Administration reported that crude stocks climbed by 400,000 barrels last week, surprising analysts who were expecting inventories to fall by 1.6 million barrels, according to a consensus estimate collected by energy information provider Platts. Gasoline inventories and distillates, used to make heating oil and gas, also rose more than expected. A stronger dollar weighed on prices Wednesday. Crude oil, like other commodities, is priced in dollars, and a stronger dollar pressures prices downward. Experts say that $70 is a reasonable price for oil, but that $80 can not be supported by current economic conditions.

Chris Nobles
Commercial Fueling
Nella Oil Company