Crude oil settles at $70 a barrel, but gas prices don’t increase

STAFF/WIRE REPORT

HOUSTON — Though crude settled above $70 a barrel for the first time this year, gasoline prices failed to rise overnight for the first time in 42 days, signaling a possible break for motorists as summer driving shifts into high gear.

Benchmark crude for July delivery rose $1.92 to close at $70.01 a barrel in trading on the New York Mercantile Exchange, hitting a new annual high of $70.18 during the afternoon.

On Tuesday, the government joined several banks that have revised their price expectations upward for the year. The Energy Department also raised its price expectations for gasoline this year.

The pace at which gasoline prices spiked throughout May caught many forecasters off guard. Still, compared with last summer, gasoline is a bargain.

This week last year, gas crossed the $4 barrier for the first time during crude’s historic run toward $150 a barrel.

On Tuesday, the average national retail price flattened at $2.619, according to auto club AAA, Wright Express and the Oil Price Information Service. That marked the first time since April 28 prices haven’t risen overnight.

In the past month alone, gas prices have jumped more than 40 cents a gallon.

The average price in the Mahoning Valley on Tuesday was $2.682, down 2.4 cents from Monday, the AAA said. A month earlier, the average price was $2.237.

Many factors can influence the price of gasoline, including demand and where oil used to make it comes from. Over the past couple of weeks, refiners that have slowed down to match anemic demand from consumers have begun to crank up production for the summer.

Fred Rozell, retail pricing director at the Oil Price Information Service, said part of the run-up in overall prices can be linked to signs of a stabilizing economy, but there’s no ignoring that fuel demand remains weak. Demand fell again at the end of May, according to the Energy Department.