Gasoline prices stable for a week- Who would have thought? Since last week's average of $2.624, prices in the U.S. have remained nearly identical, rising only $0.002 to $2.626 while prices in Canada have risen from 101.6c/L to 102.5c/L.

Retail gasoline prices are likely to fall after a large loss on the market Friday. Wholesale gasoline futures fell 8-cents to close under $2 in key markets for the first time in a week. This will cause gasoline prices to slide back under $2.60 by the end of the week in the U.S. while average prices in Canada will likely fall to 101c/L.

Oil prices this week will remain relatively stable or begin to fall slightly as traders see bearish fundamentals weighing on the market. Forces pulling oil down will be high supply, lower than average demand, a weaker than expected hurricane season, and a high amount of spare capacity. Upward pressure on prices has diminished somewhat with traders less influenced by a U.S. dollar and bullish earnings reports.

We may continue to see a roller-coaster market for oil and gasoline prices until we get out of the summer driving season. Prices have swung wildly, with oil breaching $70 last week and today trading closer to $65. Much of these swings are technical in nature, meaning statistics are driving the buying and selling. Many traders rely on technical statistics to dictate their positions in oil. If oil fails to break certain dollar barriers, it is viewed as a sign of weakness, and oil falls. Such is the case last week when oil could not eclipse $75/bbl and then fell below $70. We've been stuck between $60 and $75 and may be there for some time.

While we continue to enjoy lower prices than a year ago, there are reasons to be concerned about gasoline prices in the future. Many U.S. refiners have seen very weak margins, giving many a reason to shut significant parts of their plants for extended maintenance this fall and winter. This may cause stockpiles to fall to uncomfortable numbers, boosting refiners margins for next spring.