Oil Prices Drop after 7 Days but Gasoline Prices Keep on Increasing

After seven days of increases in oil prices, a slight drop recently occured as inventors gained some profits. However, retail gasoline prices continue to rise, making an additional of 5 cents to the national average gasoline price of $3.70 a gallon.

In New York, Benchmark crude oil prices dropped by $1.20 to end at $108.57 a barrel. Brent crude imported by refineries in the United States fell by $1.27 thus reducing the oil price per barrel to $124.20

According to some analysts, the reason for the series of oil price increases for the past nine months was primarily due to the tension caused by Iran’s nuclear program. This tension results to a conflict between Iran and the West. But there are traders who made gains due to the 9% increase in the recent oil prices.

With crude prices still rising at high levels, there are investors backing out according to the analyst of PFGB Phil Flynn.

Iran is being accused by the Western nations of its nuclear weapon build up. The Western countries are getting international inspectors to check into this. But Iran do not admit the accusations and threatens instead to retaliate by cutting oil supplies.

While the standoff is going on, gasoline prices in the United States reaches its highest level in a year at a national per gallon average of $3.70. In California, the cost of gasoline is $4.29 a gallon.

In Alaska and Hawaii gasoline costs $4 a gallon. In New York and Connecticut it is $3.95 a gallon. The prediction of some analysts is that on or before April, the national mean price of oil will be $4.25 for each gallon.

In some areas in the country, the price of gas has risen to over $5 per gallon. But these are isolated cases only.

In some energy trading, the gas fell by 2 cents making the price at $3.13 for every gallon. In heating oil the drop is 3 cents which peg the price at $3.28 a gallon and natural gas fell by 11 cents making its price at $2.44 for every cubic feet.

By Chris Termeer