Utah gasoline prices hit yet another record high Tuesday in AAA Utah's monthly survey despite the fact that crude oil prices have plummeted about $10 a barrel since OPEC decided last month to increase production.
The average price of a gallon of self-serve, regular unleaded was $1.57 in this week's poll of gas stations across the state, seven cents higher than last month, which was also a record high; and 37 cents higher than last April.In Salt Lake City, however, prices seemed to be drifting lower as the average price Tuesday was $1.54, three cents below a special Salt Lake-only survey that AAA Utah conducted on April 4 but a nickel higher than the average price at the group's last regular survey on March 14.
Prices in Provo averaged $1.59 this week and $1.55 in Ogden.
The national average this week, according to AAA, is $1.49.
The slight downward trend in prices in the Salt Lake area could be a temporary blip, said AAA Utah spokeswoman Rolayne Fairclough. "Lower crude prices and strong refinery output are pushing prices down, but increased demand in late spring may reverse that trend," she said.
Crude oil is trading this week between $24 and $26 per barrel, down from a nine-year high of $35 in early March.
Alan Kovski, an analyst with the Kiplinger Letter in Washington, D.C., told AAA that no one in the industry knows for sure how high depleted U.S. gasoline inventories will increase prior to the high-demand summer driving season.
"The refineries seem to be in pretty good shape, but they are maximizing gasoline production," said Kovski.
In northern California, which is also surveyed by AAA Utah, gasoline prices have gone down 2 cents to an average of $1.81 per gallon since the last survey in mid-March. In Nevada, prices are also a bit lower at an average of $1.80.
In New York Tuesday, gasoline futures prices rose after four U.S. refineries said they were having production problems at a time when maximum output is needed to build stockpiles for summer.
Gasoline for May delivery rose 1.1 percent to 82.86 cents per gallon on the New York Mercantile exchange after Citgo Petroleum Corp. said it shut some units at its Louisiana refinery. Three other refineries in Texas and New Jersey also announced problems on Monday that boosted prices.
Crude oil for June delivery rose 26 cents to $24.83 a barrel Tuesday on the New York exchange.
You can reach Max Knudson by e-mail at max@desnews.com