Posted in: Default,
by Patrick DeHaan on Aug 24, 2009 09:48 AM
Oil prices started where they left off last week, rising to fresh 2009 highs today. Prices started off the week close to $75/bbl, rising largely due to a weaker dollar that is supporting more money flow into oil, propping up the price.
Wholesale gasoline also advanced, rising to over $2/gal on the NYMEX. Retail prices have been slow to react as prices fluctuated last week, staying stable at $2.62 (102c/L).
This week consumers can expect gasoline prices to slowly head higher as retail prices catch up with gains in wholesale prices. By the end of the week, the U.S. average for a gallon of regular self-serve will be near $2.65 while the average in Canada will be close to 103.5c/L.
It remains to be seen what will happen in the next two weeks as the driving season comes to a close after Labor Day. Gasoline prices are largely expected to fall, but with oil and wholesale prices in an upward trend, prices may not fall as much as expected. The mandate for cleaner burning summer fuels also comes to an end in a few weeks, and we will see additional relief from the return of "winter gasoline".