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Texas gas prices increase |
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Written by Staff Reports
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Friday, 30 July 2010 |
The average price for a gallon of unleaded gasoline increased three cents in Texas, from $2.56 to $2.59.
The national average increased from $2.72 to $2.74, according to the AAA Texas Weekend Gas Watch. The Texas average is 15 cents below the national average. At $2.53 a gallon, San Antonio has the cheapest gas in Texas. The most expense gasoline is in El Paso at $2.74. Gasoline prices increased the most, a nickel, in Dallas, Fort Worth and El Paso. The cost for a gallon of gasoline in Sweetwater is currently $2.55 which remained the same since last week.
What’s driving the market?
• Crude Oil Prices Monday briefly climbed above the $80.00 a barrel range before falling back down to $78.00 where it’s trading today. Oil last Thursday was at $78.00 a barrel.
• This higher price temporarily increased crude buying as did the emergence of Tropical Storm Bonnie, the second named storm of the Atlantic hurricane season. As Bonnie moved towards the Gulf, some traders were anticipating the possibility of a disruption in refining operations and AAA National says it appears those traders decided to do some “just-in-case” buying in the event of a subsequent increase in oil prices. Ultimately, Bonnie fizzled on Saturday without any serious impact on Gulf operations.
• Late last week, the Federal Highway Administration released data showing that vehicle miles traveled in the U.S. had posted only a 0.1 percent increase compared to May of last year. This is a significant indicator of overall demand weakness since May is traditionally the beginning of the summer driving season.
• High crude inventories, weak demand numbers, and little evidence to suggest a robust long-term economic recovery are all contributing to the relative stability of prices. AAA National says with these conditions in place, the traditional increases we have witnessed during previous summer driving seasons appear unlikely.
“Gasoline prices this year continue to remain very stable by recent historical standards. The lowest price of the year in Texas was on January 2nd, when unleaded regular was $2.50 a gallon. The year to date high was $2.82 on May 6th. Since June 6rth statewide retail gasoline prices have stayed in a six-cent range from a high of $2.61 to a low of $2.55. Twenty years ago it was common to see gasoline prices increase over the course of a week a few pennies, now gasoline analysts are saying now nickel and dime increases, like those of an earlier time, are the new pennies,” said AAA Texas/ New Mexico Corporate Communications Manager Dan Ronan in Irving. |
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Last Updated ( Monday, 02 August 2010 )
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