AASHTO Journal, 30 January 2015
The average U.S. retail gasoline price edged further downward on Jan. 26, in both the latest weekly snapshot by the Energy Information Administration and the daily pricing survey by AAA. But the next day AAA reported its first nationwide average price rise after a record 123 consecutive daily declines.
The motor club said its average pump price rose to $2.038 that day, from $2.033 a day earlier, for the first increase since Sept. 25. It rose further as the week continued.
That does not mean prices are poised for a major rebound, but it could mean the big declines of the past half-year are done. And even if pump prices start to move higher, some substantial savings are locked in a while for fuel buyers. The latest retail gasoline price is about $1.25 a gallon lower than at this time last year, and the EIA recently predicted prices throughout 2015 and 2016 would stay below the average level of 2014.
The EIA’s much-watched weekly price survey, which is used by many companies to set gasoline and diesel fuel surcharges, pegged the average gasoline price as of Jan. 26 at $2.044, mildly below $2.066 on Jan. 19. The agency put the diesel average at $2.866, down more than 6 cents from $2.933 a week earlier.
Some fuel market analysts had recently been predicting that gas prices could soon start to level out, given reported cutbacks in refinery output and a period ahead in which refineries would shut down for seasonal maintenance or prepare to change over to their spring and summer blends.
In its Jan. 26 pricing commentary, AAA noted that the average rate of price decline had slowed in recent weeks, “largely reflective of a number of Midwestern states where prices have moved higher over the past week due to a series of refinery issues in the region.” http://fuelgaugereport.aaa.com/gas-price-slide-continues-as-major-storm-slams-northeast/
In addition, Reuters reported the United Steelworkers Union was signaling it was prepared for a possible nationwide strike against 63 refineries as a labor contract with oil companies was close to expiring.