Kitsap Gas Prices on the Rise

Today, the average price for a gallon of unleaded was $2.81 in Kitsap, up six cents from a week ago, says the AAA. Rachel Pritchett

The Associated Press
Oil prices rose sharply Thursday on new signs that the U.S. economy has rebounded, though crude levels globally continue to grow and there are few signs that actual demand for it has increased significantly.
The dollar fell once again, a factor throughout the year as crude hovers around $80 per barrel and a big reason why motorists have watched gasoline prices rise steadily for more than two weeks.
The average retail price for a gallon of gasoline is now less than a penny below highs reached during the U.S. driving season.
Benchmark crude for December delivery rose $2.41 to settle at $79.87 a barrel on the New York Mercantile Exchange.
The Commerce Department said Thursday that the economy grew at a 3.5 percent pace in the third quarter, the best showing in two years, fueled by government-supported spending on cars and homes. The report delivered the strongest signal yet that the economy entered a new, though fragile, phase of recovery and that the worst recession since the 1930s has ended.
“Any sort of encouragement with the economy is potentially bullish for oil,” said oil trader and analyst Stephen Schork.
At the same time, global oil companies have reported that crude production grew during the quarter and American Electric Power, one of the nation’s biggest utilities, said Thursday that electricity demand from industrial customers remains weak, but is showing signs of picking up.
Since last week, crude has retreated from $82 a barrel, the high for 2009, as the U.S. dollar gained back some of its losses from recent months.
Oil is largely bought and sold in dollars, which allows investors holding currencies like the euro or yen to buy more crude when the dollar falls.
When crude began rising in the middle of the month, gasoline prices that averaged less than $2.50 per gallon at the time began to tag along.
Pump prices rose for the 16th straight day Thursday, climbing 0.8 cents to $2.691 a gallon, according to AAA, Wright Express and Oil Price Information Service. That is 21.4 cents higher than a month ago and 10.2 cents higher than a year ago.
In other Nymex trading, heating oil rose 5.73 cents to settle at $2.0542 a gallon. Gasoline for November delivery added 3.26 cents to settle at $2.019 a gallon. Natural gas for December delivery gave up less than a penny to settle at $5.062 per 1,000 cubic feet.
In London, Brent crude for December delivery rose $2.18 to settle at $78.04 on the ICE Futures exchange.

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