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Gas prices remain steady, high |
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September 25, 2000
CAMARILLO, Calif. (AP) — Gasoline prices remained steady over the past two weeks, with no immediate impact from President Clinton's decision to tap 30 million barrels of oil from emergency stockpiles, an analyst said Sunday. The Lundberg Survey of 10,000 stations nationwide found that the average price of all grades, plus taxes, was $1.62 per gallon Friday. It was a tenth of a cent per gallon lower than prices the survey found two weeks ago, but 28 cents per gallon higher than for the same period a year ago. Analyst Trilby Lundberg said Sunday that prices likely wouldn't drop to 1999 levels any time soon. Clinton's announcement Friday may have had some ``psychological effect'' on retail prices, but the oil won't hit the market until next month, Lundberg said. Rising energy costs are becoming an issue in the presidential campaign as winter heating bills are expected to be as much as 50 percent higher than last year's. Crude oil is selling for more than $34 per barrel, a 10-year high. The end of the summer driving season often means lower gasoline prices as demand dips and refineries convert more of their oil to heating fuel. But costlier crude oil is keeping gas prices high. Lundberg said it is hard to predict the price impact of the government's oil release, especially since weather and other factors play a role in demand. Thirty million barrels of oil is ``a drop in the bucket'' compared to U.S. demand, Lundberg said, but the balance between supply and demand is so fine that ``even small volumes can tip the scales'' in terms of price. The 590-million-barrel Strategic Oil Reserve was set up as insurance against interruption of oil supplies after the 1973 Arab oil embargo caused shortages at the gasoline pumps. Except for two practice draw-downs, its only previous use was during the 1991 Persian Gulf War. The national weighted average price of gasoline, including taxes, at self-serve pumps Friday was $1.57 for regular, $1.67 for mid-grade and $1.76 for premium. For full-serve, prices were $1.88 for regular, $1.97 for mid-grade and $2.05 for premium. |
