CLEVELAND, OH (WOIO) - For the second consecutive week, Northeast Ohio gas prices have increased five cents.
The average price for a gallon of self-serve, regular unleaded gasoline is $2.653 at the pump.
According to AAA's Fuel Gauge, oil prices settled Monday at $75.12, up $1.34. Traders were bolstered by reports of April's stronger than expected industrial output from Europe which stoked market optimism and raised the possibility for an increase in global fuel demand.
The markets got a sneak peak at Europe's potential last week with news that German manufacturing orders and exports had grown substantially in April.
Today found that momentum mostly sustained as the euro rose against the dollar for the fourth time in five days, gaining 1.3% and bouncing back from last week's four-year low. However, gains were tempered later in the day when the news broke that Moody's had down-graded Greece's debt rating to junk status.
Overall, the weak dollar remains the key fundamental driver of crude prices. Crude is priced in dollars and becomes cheaper to investors holding other currencies when the dollar loses value. But the weak dollar was not the only factor moving the market.
Analysts reported an unexpected drop in the nation's crude inventories in June. This is the first time since January that crude inventories dropped for two consecutive weeks.
Hovering in the background are unanswered questions that remain as to the overall size of the Deepwater Horizon spill in the Gulf of Mexico.
As of yet, neither the spill, nor the six-month moratorium on deep water drilling by the Obama Administration have impacted prices in the short term. President Obama is visiting the Gulf region today for the fourth time since the disaster began in preparation for a national address Tuesday evening in prime time.
Despite the concerns regarding the overall impact of the situation in the Gulf, gas prices have remained low at the retail level.
The national average retail price for a gallon of self-serve unleaded regular is $2.696. Prices have dropped 8% in the last two months and have dropped 17.9% overall since last month.
This week's average prices: Northeast Ohio Average . . . . . . . . . . $2.653
Average price during the week of June 8, 2010 . . . . . . . . . . . . . . . . $2.603
Average price during the week of June 16, 2009 . . . . . . . . . . . . . . $2.707
The following is a list of the average price of unleaded self-serve gasoline in various areas:
$2.703 New Philadelphia
AAA East Central is a not-for-profit association with 80 local offices in Pennsylvania, West Virginia, Ohio, New York and Kentucky servicing 2.6 million members.