Rising prices at the pumps attributed to increase in crude oil prices

Nevada Daily Mail

After a brief respite at the gas pumps, prices are again steadily rising, with prices in Nevada hovering at about $2.25 per gallon for regular unleaded as of this morning.

Analysts are blaming increases in the cost of crude oil. According to a report provided by the Missouri Department of Natural Resources, crude oil futures prices settled $1.22 higher on Feb. 21, moving above $60 per barrel for the first time in 2007.

Crude prices continued to gain strength moving from $50.48 on Jan. 18 to $60.07 on Feb. 21, an increase of 16 percent in response to lower crude oil imports, lower petroleum stocks and petroleum product output, and unscheduled refinery maintenance and repair. Petroleum product prices followed crude prices higher while natural gas prices fell in the past week, The U.S. Department of Energy's weekly storage report showed an increase in domestic supplies of crude oil of 3.7 million barrels for the week ending Feb. 16 attributed to lower U.S. refinery input. U.S. gasoline supplies were 3.1 million barrels lower compared to the previous week, and distillates, including diesel and home heating oil supplies, were down 5 million barrels from last week.

U.S. gasoline demand over the past four weeks was 3.8 percent above last year; distillate demand, including heating oil and diesel fuel, was 9.8 percent higher. Jet fuel was 5.7 percent above year-ago levels.

Missouri's average retail price for regular gasoline increased 18 cents per gallon in the past month to $2.18 per gallon on Feb. 19. The retail average is 13 cents higher than a year ago. Missouri's average price remains below the U.S. average price of $2.30 and the Midwest average retail price of $2.29 per gallon.

On Feb. 21, Missouri's average retail diesel fuel price was $2.40 per gallon, about 2.5 cents higher from last month and 4 cents or 2 percent higher than last year's average retail price of $2.36.

U.S. natural gas supplies as of Feb. 16 totaled 1,865 billion cubic feet, which is 10 percent above the five-year average inventory level for this time of year. Natural gas prices closed at $7.72 per MMBtu, $1.49 higher than last month's settlement at this time and 44 cents above last year's price of $7.28 per MMBtu, a difference of 6 percent. From Feb. 14 to Feb. 21, futures prices have dropped $1.40 per MMBtu on expectations of warming temperatures.

U.S. propane supplies fell by 5.8 million barrels last week and now stand 5.7 million barrels lower than this time last year. Missouri residential propane prices averaged nearly $1.70 per gallon on Feb. 19, relatively unchanged compared to last month and 2.5 cents lower than last year at this time.