Today’s fuel price musings - who let the oil out?

Add comment June 11th, 2008

The U.S. Energy Information Administration reported today that oil inventories have dropped more than three times what analysts expected, sending prices upward. Oil hit as high as $138.3, and is now at $136.38 a barrel. Analysts say gas prices haven’t caught up to rising oil prices, and will keep rising even if oil plateaus. The EIA projects fuel could peak at  $4.15 a gallon nationally in August, but one analyst sees $4.25 a gallon gas by July 4 if oil remains around $140.

Looking long-term, the EIA suggests that fuel-efficient cars and increased use of ethanol could drop oil prices to $86 a barrel in 2010 and back up to $107 a barrel in 2015. Wonder what the cost of corn would be, then?

On to the prices:

 Gasoline: Rockford increased more than two cents today to a record $4.14 a gallon. We remain second in the state. Most metro areas increased today and now only Champaign ($3.99) remains under $4. The state average rose a fraction of a cent today to remain at a record $4.13. The national average rose a cent today to a record $4.05. Illinois still has the ninth-highest gas prices in the nation.

Diesel: Rockford increased a fraction of a cent today to $4.81, five cents behind the record set May 30. We still have the second-highest diesel prices in the state. The state average rose a cent to $4.80 a gallon. That’s a cent behind the record set May 31. The national average gained les sthan a cent today to sit at $4.79 a gallon, tying the record set May 30. Illinois still has the 20th-highest prices in the country, (including the District of Columbia).