Oil goes down, but gas prices up

Published 4:00 pm Wednesday, February 18, 2009

Gas prices continued to increase the past week, even as crude oil fell to a new low for 2009.

Crude oil was trading at about $35 per barrel on the New York Mercantile Exchange Tuesday afternoon, compared to about $39 last Tuesday.

It closed at less than $34 last week, which is its lowest point for the year. That’s down from the record high of $147 set last July.

Oregon’s average for regular unleaded jumped another 6 cents in the past week to $2.12, while the national average increased 3 cents to $1.96.

As of Tuesday afternoon, regular unleaded gas prices in Wallowa County were at $2.18 in Joseph, $2.19 in Wallowa and $2.21 at Enterprise stations, compared to $2.14 in Enterprise and Wallowa and up to $2.109 in Joseph the same time last week.

“For the last several weeks, U.S. refiners have been processing less crude oil and producing less gas,” AAA Oregon Public Affairs Director Marie Dodds explained. “This is usually the time of year that many refineries shut down for maintenance, and when refineries begin the seasonal switch from winter to summer blends. But many refineries have been slashing their output because of lackluster demand. Last fall, many refiners saw their profit margins disappear as Americans used less gas.”

Dodd said AAA believes the national average could climb as high as $2.50 a gallon in the coming weeks, but then ease back down as the country heads into the summer driving season.

“With a faltering economy and many people watching their spending, it would be difficult for prices to return to the record highs above $4 a gallon we saw last summer,” Dodds said.

Marketplace