Weekend pump prices up a few cents

[August 07, 2010]  NEW YORK (AP) -- Motorists heading out for back-to-school shopping trips or a late-summer vacation will pay a few cents more for a gallon of gas this weekend.

Pump prices rose this week because of a rally in oil, yet they aren't expected to spike in the weeks ahead because of typical light trading in the oil market in August, still-ample supplies and fairly weak demand.

The national average for a gallon of unleaded regular gasoline was $2.779 Friday, about 3.8 cents higher than a week ago, according to AAA, Wright Express and Oil Price Information Service. It's also 16.9 cents more than motorists paid a year ago.

Travelers in the West, Illinois and New York are seeing the highest prices, in a range between $2.891 a gallon and $3.554 a gallon. The lowest prices are in Texas, the Midwest and the Gulf coast region.

Unleaded regular gasoline prices should range between $2.75 a gallon and $2.85 a gallon until Labor Day when a retreat is expected as demand falls, said Tom Kloza, publisher of the Oil Price Information Service.

That means drivers should expect to pay about $140 for gasoline this month if prices average $2.80 per gallon. A typical driver uses about 50 gallons of fuel per month.

It's still less than the gas bill in the summer of 2008, when prices topped $4 a gallon. That cost motorists about $200 a month for gasoline.

Most analysts believe it will take a hurricane shutting down Gulf production or a similar significant event to see a big shift in gasoline prices.

The National Oceanic and Atmospheric Administration has downgraded its forecast for hurricanes this season. It's calling for as many as 20 named storms in the Atlantic with up to 12 hurricanes. As many as six could become major hurricanes.

That compared with a May 27 forecast of 14 to 23 named storms, eight to 14 hurricanes and as many as seven major hurricanes.

Hurricane season usually peaks between Aug. 15 and Sept. 15.

In energy trading, oil prices dipped after a government jobs report prompted new concerns about economic growth.

The Labor Department said the July unemployment rate was unchanged at 9.5 percent. The net gain in jobs was 12,000 last month, when an increase in the private sector was offset by a loss of government jobs.

Benchmark crude for September delivery fell $1.31 to settle at $80.70 a barrel on the New York Mercantile Exchange.

"Oil prices may be subject to push-pull in investment sentiment -- support from some as a hedge against inflation and pressure from remaining concerns over the prospects of slow economic growth," said an energy report from Sucden Financial in London.

In other Nymex trading in September contracts, heating oil fell 3.96 cents to settle at $2.1472 a gallon, gasoline lost 5.17 cents to $2.1127 a gallon and natural gas dropped 13.1 cents to $4.467 per 1,000 cubic feet.

In London, Brent crude was down $1.45 to $80.16 a barrel on the ICE Futures exchange.

[Associated Press; By SANDY SHORE]

Associated Press writers Pablo Gorondi in Hungary and Alex Kennedy in Singapore contributed to this report.

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