Jackson Parker

• August 1st, 2011
• Jackson Parker

US debt concerns are fueling rising gas prices. Now speculation that fuel prices could go much higher if the government cannot come to an agreement about raising the debt ceiling.

Currently gas prices are averaging $3.70 a gallon in the US. Oil prices fell below $97 per barrel as US leaders failed to agree to lift the government debt limit just hours from a deadline, leaving investors to consider worst case scenarios if a default occurs. By the early afternoon on Friday, crude oil rose 4 cents and closed at $97.44 on the New York Mercantile Exchange.

According to the AAA Fuel Gauge Report: Default or a downgrade of the U.S. credit rating would have far-reaching consequences for the U.S. economy. These consequences would likely affect crude oil prices with pressure in two opposing directions. A weakening U.S. economy likely means a weaker U.S. dollar. As discussed, when the dollar weakens, crude oil prices are expected to see upward pressure as the product becomes relatively cheaper.

• July 27th, 2011
• Jackson Parker

Gas prices could climb to more than $5 per gallon this year if Washington can’t reach an agreement by August 2. Yesterday oil prices increased to nearly $100 per barrel as legislators battled over an agreement on the U.S. debt limit and the American dollar weakened over uncertainty about the economy.

While congressional leaders bickered over spending and raising the borrowing limit ahead of an Aug. 2 deadline, the dollar fell sharply against the euro and other currencies on Tuesday. That tends to raise the price of oil, since crude is priced in dollars and a weaker dollar makes oil more of a bargain for traders using other currencies.

“A U.S. government default that causes institutional investors to dump U.S. government bonds, triggering a plunge in the dollar, pushing up oil’s price,” according to the International Business Times. The report said the bickering could push oil prices higher, which would eventually show up at the pump and trickle to other parts of the economy.

• July 21st, 2011
• Jackson Parker

Gas Prices Up 5 Cents in Last 30 Days, Good and Bad News for California Gas Prices

Gas prices are currently on a slightly upward trend. The average price for a gallon of regular unleaded gas is currently $3.68, up 5 cents since 30 days ago, and 3 cents since one week ago, according to the AAA Fuel Gauge Report. The reasons gas is slowly creeping back up after a two-month decline include: the faltering Greek economy, a weaker US dollar, unrest in Libya, increasing demand for gas and limited production from refineries.

Gas prices in California have remained unusually low, when compared to other states in the US. Typically California has the highest gas prices in the continental US, but several other states currently have higher prices such as Connecticut, Washington, New York and Washington D.C. The average price in California is $3.782 today, a 2 cent increase since last week.

For Californians there is good and bad news, gas still costs 14.4 cents less than it did a month ago, according to AAA’s Daily Fuel Gauge Report. However, it’s still 67.3 cents more expensive than it was a year ago.

• July 20th, 2011
• Jackson Parker

The current national retail average price for a gallon of self-serve regular gasoline is $3.67. Today’s average price is 4 cents more than the price one week ago, and two cents more than one month ago. Currently three states have an average retail price for regular unleaded of more than $4 per gallon – Hawaii, Alaska and Connecticut.

Oil reversed direction for the fourth straight trading day on Tuesday and climbed about 2 percent, as traders faced uncertainty about the direction of the economy and a weaker dollar.

Crude oil is used to produce gasoline and other fuels, and it’s also a major investment commodity. Prices can swing with the collective mood on Wall Street. Recently benchmark oil has fluctuated between $95 and $99 a barrel as investors gauge how Europe deals with Greece’s debt crisis and the debate goes on in Washington over spending and the U.S. debt ceiling.

• July 19th, 2011
• Jackson Parker

Gas prices have continued to rise during the month of July. This week, a gallon of regular unleaded is averaging $3.67 per gallon, according to the AAA Fuel Gauge Report. This price is 4 cents higher than one week ago, one cent higher than a month ago, and 95 cents higher than one year ago. One week ago, gas was averaging $3.63 a gallon.

Gas prices have been rising across the entire US, according to AAA. In Florida the average price of $3.66 per gallon is a 6 cent increase from last week. Gas prices in Rhode Island are on the rise, up seven cents from last week, averaging $3.82 per gallon. Massachusetts gas prices are up for the second consecutive week. Regular gas jumped a nickel in the past week to an average of $3.71 per gallon.

• July 18th, 2011
• Jackson Parker

Gas prices are currently averaging $3.66 for a gallon of regular unleaded, according to the AAA Fuel Gauge Report. This is a 7 cent increase from this time last week. The Fuel Gauge Report uses retail receipts from more than 100,000 service stations across the United States, compiled by the Oil Price Information Service and by Wright Express.

Since the July 4 weekend, US drivers have been paying more at the pump. The states with the most expensive gasoline today are:
* Alaska – $4.09
* Hawaii – $4.04
* Connecticut – $3.98

• July 13th, 2011
• Jackson Parker

Gasoline prices are rising again even though drivers in the U.S. have bought less gas for four months in a row. Gasoline is getting more expensive even though motorists continue to cut back. MasterCard SpendingPulse said Tuesday that gasoline consumption has dropped for 16 weeks in a row. SpendingPulse, which tracks credit card payments around the country, said the four-week average for gasoline demand fell by 1.1 percent last week compared to a year ago.

Demand even dropped over the July 4 weekend, usually a time for lots of road trips. MasterCard analyst Jason Gamel said motorists used 1.7 percent less this year than they did during last year’s holiday weekend.

Oil, which is used to make gasoline, is higher as well. On Tuesday. Benchmark West Texas Intermediate crude for August delivery gained $2.28, or 2.4 percent, to settle at $97.43 per barrel on the New York Mercantile Exchange. Brent crude, used to price many international oil varieties, rose 51 cents to settle at $117.75 per barrel on the ICE Futures exchange in London.