Last week, for the first time in six weeks, the U.S. average price for regular gasoline increased, moving up four cents to settle at $2.74 per gallon, according to the Energy Information Administration. This is 5 cents higher than last year at this time. The West Coast (Alaska, Arizona, California, Hawaii, Nevada, Oregon, and Washington) average climbed four cents to $3.03 per gallon, while the price in California moved up nearly a nickel to $3.10 per gallon.

     The national average price for diesel fuel rose for the first time since May 10, 2010, climbing three cents to $2.96 per gallon, 35 cents above the price a year ago. The West Coast price moved up four cents to $3.09 per gallon and the average in California jumped six cents to $3.13 per gallon.
     An Oil Price Information Service news report Friday noted that Congress had finally agreed on a bill to overhaul U.S. financial regulations and went on to say what the legislation might mean to the energy industry. The legislation included a provision that would limit federally insured banks' ability to trade derivatives, including energy swaps. With that news, domestic crude oil was up about a dime to around $76.60/bbl, and closed at $78.61 Friday.
     On Thursday Growth Energy announced that Underwriters Laboratory (UL) has issued certifications to two major fuel dispenser manufacturers for equipment dispensing any range of fuel ethanol from E-0 through E-85.  This might help grow the higher-blend ethanol fuel markets, although providing specific infrastructure for ethanol blends beyond the standard Regular Unleaded rate (10% in California and Nevada) is another obstacle.
     Experts say the brewing storms in the Gulf of Mexico had an upward effect on the energy prices Friday, since roughly 25% of domestic oil and natural gas sources are located there.
     Earlier this week, a federal judge in Louisiana made news by overturning the Obama Administration's 6-month suspension of deep water drilling. Oil production in the region is an integral part of the economy in the Gulf states along with the tourism and seafood industries, which have also been hurt by the spill


Chris Nobles
Commercial Fueling
Nella Oil Company