Gasoline prices continue to set records

Nevada Daily Mail

JEFFERSON CITY, Mo. -- As the Memorial Day weekend passed, motorists faced nearly daily record setting prices. Although since Monday there has been a slight decrease in the price at the pump, Missouri motorists filling their tanks are confronted by retail prices that have moved well above $3 per gallon. On May 21, Missouri's average retail price for regular unleaded gasoline was $3.23 per gallon, 29 cents or 10 percent higher than the average retail price just two weeks ago. Missouri's average price over the weekend was above the U.S. average price of $3.218, yet below the Midwest average retail price of $3.326 per gallon. according to the latest Energy Bulletin from the Missouri Department of Natural Resources' Energy Center. The department's Energy Center collects fuel prices from retail providers located throughout Missouri.

On May 21, Missouri's average retail diesel fuel price was $2.75 per gallon, down $0.086 from last month, and 53 cents, or 2 percent lower, than last year's average retail price of $2.803. Missouri's average diesel prices are 5.3 cents lower than the U.S. average of $2.803 per gallon.

According to the U.S. Department of Energy, U.S. gasoline prices have increased for the fourth consecutive week and have now reached an all-time nominal high for the second week in a row. Only two states -- New Jersey and Oregon -- reported retail prices below $3. Very tight gasoline supplies, challenges within the U.S. refinery industry to produce sufficient supplies of petroleum products and high consumer demand are contributing to higher retail prices.

Although U.S. gasoline inventories grew by 1.5 million barrels for the week ending May 18, total domestic inventories are 11.8 million barrels lower compared to last year's level at this time. Since the beginning of February through April, U.S. gasoline supplies dropped 15 percent, the largest three-month decline on record, according to the U.S. Department of Energy's weekly storage report. U.S. gasoline supplies were 196.7 million barrels last week, representing approximately 21 days of supply for the U.S. based on implied demand during the past 4-week average, and the lowest inventories at this time in the past 50 years.

Despite the higher prices at the pump, motorists aren't staying home. According to U.S. Department of Energy information released May 23, U.S. motorists increased their daily gasoline consumption to more than 9.433 million barrels of gasoline per day for the week ending May 18. U.S. gasoline demand increased approximately 2.7 percent compared to the same period last year.

U.S crude oil futures prices settled 26 cents lower on May 23, moving to $65.77 per barrel for July crude future contract deliveries.

Summer crude prices are gaining strength due to the return of U.S. refineries side-lined by operational issues and expectations for increased refinery utilization in the months to come.

Also lending support to crude prices are expectations for an active hurricane season that begins next week and related concerns over adequate supplies of summer gasoline supplies, as well as continued civil violence in Nigeria, a significant source of crude to the United States.