Gasoline prices rise even as oil futures fall
Retail gasoline prices rose nationally in the last week, the Energy Department said Monday, but analysts said there was strong reason to believe that pump prices should be falling soon.
The average price of a gallon of regular gasoline rose nationally by 3.2 cents to $2.858, according to the Energy Department’s weekly telephone survey of service stations.
California’s average was nearly unchanged for the fourth straight week, climbing just 0.8 of a cent to $3.096 a gallon.
Gasoline supplies are near a 17-year high and well above the five-year average, said Phil Flynn, an analyst for PFGBest Research in Chicago.
That means prices should be dropping in the coming weeks, he said.
Oil investors reined in their enthusiasm over last week’s economic news, and crude futures for May delivery fell to $84.34 a barrel, down 58 cents, on the New York Mercantile Exchange.
Oil’s decline came even though the euro gained value against the dollar after news that a $41-billion bailout had been crafted to rescue Greece from economic disaster.
Oil prices usually rise when the dollar weakens compared with the world’s other major currencies, as investors seek out commodities as better investments. But not Monday.
“I think the market is getting a little tired of hearing about the Greek economic situation,” Flynn said. “Oil supplies are well above normal, and I think this showed that the market was focused on the heavy supply side of the equation.”
