Posted in: Gas Prices,
by Patrick DeHaan on Aug 9, 2010 01:44 PM
After a pretty active week last week on the oil and gasoline futures market, I would expect this week to bring more stability than we saw last week.
Oil futures began this week resting above the $80 mark while gasoline futures stood at $2.10/gallon on the NYMEX. While this week certainly will continue to see fluctuating prices, I don't see a huge threat of a repeat of last week when oil prices revisited territory above $80.
The United States average for a gallon of gasoline this week began close to $2.79, a level we have not seen since early May when prices peaked near $2.95/gal. Prices in Canada have remained quiet during the same time, moving from 99c/L in late May to near 102.7c/L yesterday.
While futures have begun to calm down compared to last week, retail pump prices still have some catching up to do. It is pretty likely that retail averages in the U.S. will surpass $2.80 this week, and may climb to $2.83 by the end of the week.
Looking at the tropics today, we see one disturbance that has a high risk of developing into an organized storm, while another area has a low chance of developing. We're still a few weeks away from the peak of hurricane season, so don't be surprised if more areas look ripe for developement.
Folks living outside of Speedway States (MI, OH, IN, MN, WI, KY, WV) can expect prices to gradually climb. For those who live in a Speedway State, expect prices to slowly drop after last week's price hike. The threat of a price hike in Speedway States is low at this time but may change later in the week. Stay tuned!