For the fourth week in a row, according to the Energy Information Administration, the U.S. average price for regular gasoline increased. The average moved up about four cents to $2.79 per gallon and was 88 cents above last year at this time. The cumulative increase during the past four weeks amounts to 18 cents per gallon. Prices rose in all regions of the country, with the increases ranging from two cents to nearly five cents per gallon. The West Coast average grew by more than two cents to $3.01 per gallon while the California price increased a cent and a half to $3.06 per gallon.
     The U.S. average price for diesel fuel also went up for the fourth consecutive week. The increase of two cents moved the average to $2.92 per gallon, 91 cents above the year-ago price. The West Coast price was slightly higher at $3.01 per gallon and the California average moved up a penny to $3.07 per gallon.
      Crude oil prices are hovering around the $80 per barrel mark. OPIS reported that a stronger U.S. dollar against the backdrop of losses for major equities indices facilitated a drop back in crude values. When the dollar rallies, commodities become less attractive as a hedge. But Friday's close, down $1.52 to $80.68 per barrel for crude, didn't vary much from the recent range. The pattern has been for crude oil to rally over $80 per barrel and then fall back. That's just what happened last week. Softer prices are following bearish conditions for crude oil. Stocks have grown as refiners run less oil to make refined products in the climate of deteriorated demand.
     Long term, the Energy Information Association expects domestic crude prices to average above $80 per barrel this spring, rising to an average of about $82 per barrel by the end of the year and to $85 per barrel by the end of 2011.

Chris Nobles
Commercial Fueling
Nella Oil Company