Oil and gasoline prices continue to crawl up
By CHRIS KAHN
NEW YORK (AP) — Energy prices flattened Tuesday with a majority of futures traders taking the holiday week off, though a stronger dollar helped keep a barrel of oil below $79.
Benchmark crude for February delivery added a penny to $78.78 a barrel on the New York Mercantile Exchange. In London, Brent crude for February delivery increased 25 cents to $77.57 a barrel on the ICE Futures exchange.
A rise in the dollar versus other currencies tends to push oil prices lower. Crude barrels are priced in dollars, and investors holding foreign money can’t buy as much when the dollar rises.
Still, oil has pressed higher for four straight days. Crude barrels are rising close to the high for the year of $82 a barrel, and that’s tugging other fuels higher as well.
Retail gas prices increased for the fourth straight day, the first time it’s done that since October. The national average climbed a half penny overnight to a new national average of $2.608, according to auto club AAA.
A gallon of regular unleaded is 2.1 cents cheaper than a month ago, but nearly $1 more expensive than a year ago.
When the new year begins, analyst and trader Stephen Schork said he’ll be closely watching profit margins for oil refiners. Crude prices have surged this year despite a drop in American consumption. If refiners can’t pass along those higher costs with more expensive gasoline, then Schork said he’ll brace for a correction in oil prices.