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Gas prices rise as earnings news overcomes debt fears
By Palm Beach Business.com
DELRAY BEACH — Investor optimism about the economic recovery helped push crude oil prices higher over the past week, taking retail gasoline prices higher as well.
The U.S. Energy Information Administration reported Monday that the national average price for a gallon of regular shot up to $3.682 from $3.641 a week earlier. A month ago, the average sat at $3.652 a gallon.
In Florida, EIA reported regular averaging $3.636 a gallon, up from $3.587 a week ago and $3.566 a month ago.
Palm Beach County prices shot up even more, averaging $3.783 a gallon, up from $3.728 a week ago and $3.754 a month ago, according to AAA’s Fuel Gauge Report for Monday. As usual, Palm Beach has the most expensive prices in Florida.
In Broward, regular averaged $3.749 a gallon, up from $3.702 a week earlier.
AAA said better than expected earnings from the likes of Citigroup and Google helped overcome investor concerns about the futile negotiations over the debt ceiling. Crude oil settled Friday at $97.49 a barrel on the New York Mercantile Exchange — $1.29 more than the week prior. Crude settled at $95.93, down $1.31 a gallon during Monday’s trading.
Total U.S. fuel demand is down .04 percent to 18.9 million barrels a day over the past four weeks and down 1.4 percent from the same period a year ago, according to the Department of Energy. Gas consumption is down 1 percent to 9.23 million barrels a day from the same period, a .09 percent decrease year-over-year.
"Despite negative news about the job market and consumer sentiment, investors are seemingly optimistic the U.S. economy will start to pick up, a statement made for quite some time with no solid data to support the claims," said Jessica Brady, spokesperson, AAA Auto Club South. "The high unemployment rate, increased oil and gas prices, along with a volatile stock market have consumers on edge. Oil and gas prices are expected to increase again this week on speculation the Federal Reserve may take action this week to help stimulate the economy."
