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.
