Fuel prices see slight ascent

Shortly after Federal Reserve Board Chairman Ben Bernanke said "prospects for growth in the near term appear good" last Friday, the Dow Jones Index shot up by 155 points and crude oil closed at its highest price of 2009 at $73.89 per barrel on the New York Mercantile Exchange (NYMEX).

For the week, the Dow Jones, Standard & Poors 500 and NASDAQ Composite Index all posted significant gains, and energy and oil futures prices rose with them to the highest levels seen since last October. Crude oil's NYMEX price closed $6.38 per barrel higher than the previous week.

Whether the increase in crude oil will translate into an increase at the gas pump remains uncertain. Economists point to negative unemployment figures and consumer spending as indicators that Bernanke's outlook may be too optimistic. 'Bloomberg News' reports that 21 of 38 oil analysts surveyed (55 percent) said they expect the price of crude oil to drop this week.

Others such as 'Retail Fuel Watch' suggest that supply is the most important thing to watch. While low utilization rates and low profits have prompted refineries to cut production, those reductions tighten gasoline supplies. When you add to the equation normal slowdowns because of hurricane warnings, it adds uncertainty.

Laskoski

"Coming off of a week that closed with the highest price for crude oil since last October suggests an uptick for retail gasoline prices," said Gregg Laskoski, managing director of public relations, AAA Auto Club South. "Wholesale prices increased in most markets at the end of last week, and unless they drop, retail prices tend to reflect the direction of wholesale prices."