Gas Prices Rise In West U, Jump May Signal Higher Prices In Coming Months

Average retail gasoline prices in West U have risen 4.2 cents per gallon in the past week, averaging $2.63 per gallon yesterday.
This compares with the national average that increased 5.4 cents per gallon in the last week to $2.85 per gallon, according to HoustonGasPrices.com.
Including the change in gas prices in West U during the past week, prices yesterday were 14.5 cents per gallon higher than the same day one year ago and are 5.1 cents per gallon higher than a month ago.
The national average has increased 6.1 cents per gallon during the last month and stands 20.0 cents per gallon higher than this day one year ago.
“Last week we saw oil prices surpass $87 per barrel after the Federal Reserve announced a $600 billion injection into the U.S. economy, causing the U.S. dollar to lose value, thereby pressuring oil and gasoline prices higher,” said Patrick DeHaan, GasBuddy.com Senior Petroleum Analyst.
DeHaan said in addition to the Fed’s actions, a Department of Energy report indicated another drop in U.S. supplies against rising demand. He also noted that areas of the Midwest were affected by a fire at a Chicago area refinery, sending pump prices in some of those areas above $3 per gallon for the first time in 25 months.
“With oil prices breaking out of their well-established $75-$85 per barrel range, I’m quite concerned we could see prices trade in a higher range, perhaps $85-$95 per barrel for several months, signaling higher gasoline prices in the future,” DeHaan said.