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OIL AND GAS
Labor Day weekend gas prices highest in four years
by Ed Adamczyk
Washington (UPI) Aug 31, 2018

U.S. gasoline prices, as well as demand, remain high for the Labor Day weekend, the U.S. Energy Information Administration reported on Friday.

The U.S. average retail price for regular gasoline, reported on Aug. 27, was $2.83 per gallon, the highest it has been the Monday before Labor Day since 2014 -- when it was $3.45 per gallon.

The 2017 figure was affected by Hurricane Harvey in the Gulf Coast. In an eight-day period, which included Labor Day last year, the price of gasoline rose, on average, 28 cents per gallon.

"Crude oil is the main input cost in the production of gasoline, and movements in the crude oil price -- along with changes in gasoline market conditions -- drive changes in wholesale and retail gasoline prices," EIA said in Friday's report.

The 2018 price is 43 cents per gallon higher than the same time last year. This year's price is influenced by the cost of oil. North Sea Brent crude oil is $18 per barrel higher than at this time in 2014. It coincides with higher demand, the EIA said, putting upward pressure on prices. U.S. Federal Highway Administration data indicate that cumulative miles driven in the United States through the first half of 2018 increased by 5.2 billion miles, or 0.3 percent, from the same period in 2017.

The highest-priced market for gasoline, by state, is Hawaii, at $3.76 per gallon, followed by California at $3.60, Washington at $3.37, Alaska at $3.32 and Idaho at $3.26. Idaho's price has risen by 12 cents per gallon since the start of August. Part of the West Coast's high prices can be attributed to refinery maintenance and the increased gas usage during the summer tourist season, the American Automobile Association said.

Although prices remain high, there has been little elasticity during the summer. The national average observed daily between June 1 and Aug. 27 shows only a 13-cent swing in prices per gallon. The summer of 2005 saw a 91-cent differential between high and low prices, due in part to Hurricane Katrina's appearance on the Gulf Coast.


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OIL AND GAS
Crude oil rises on news of decline in U.S. inventories
Washington (UPI) Aug 30, 2018
Crude oil futures moved upward on Thursday after news of a decline in U.S. oil inventories, and analysts' wait-and-see approach to Iranian threats to leave the 2015 nuclear deal. U.S. crude oil inventories fell 2.57 million barrels in the week ending Aug. 24, the Energy Information Administration reported on Wednesday. The inventories followed a downward pattern after spiking in the spring of 2017. Total U.S. gasoline inventories fell 1.61 million barrels last week to 222.8 million barrels, whi ... read more

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