Obama: Tensions With Iran, Increased Demand Pressure Crude Oil Prices

From the East Penn Region, of AAA East Central, an affiliate of AAA and the Pennsylvania AAA Federation

According to AAA’s Fuel Gauge Report, crude oil prices were largely flat to begin the week as West Texas Intermediate prices increased 16 cents per barrel to settle at $107.03 yesterday. This marks $1.06 week-over-week decrease from the settlement price to begin last week.  

Last Thursday, AAA had an opportunity to sit down and talk to President Obama and he outlined the two key issues that have pressured prices higher this year: tensions with Iran and increasing global demand for crude oil. Bearish developments for oil prices on both of these issues last week were seen as the primary stories pressuring prices lower. President Obama also noted to AAA, that uncertainty in the Middle East and Iran is “adding a $20 or $30 per barrel premium to oil prices.”

While WTI crude oil prices have declined slightly, gasoline prices across the United States continue to rise. The national average price at the pump has now risen for 19 consecutive days and has only declined on three of the past 60 days. 

 The current national average retail price for a gallon of self-serve regular gasoline is $3.898 up 21 cents from last month. In Pennsylvania, today’s average price of self-serve gasoline is $3.890 up 15.2 cents from a month ago and 33.4 cents higher than a year ago. In the Lehigh Valley, the average price for self- serve regular unleaded gasoline is $3.838 per gallon which is 12.3 cents higher than a month ago and 31.1 cents higher than a year ago. In the Philadelphia market, the average price for self- serve regular unleaded gasoline is $3.857 per gallon which is 11.9 cents higher than a month ago and 29.4 cents higher than a year ago. 

3/27/2012

WEEK AGO

YEAR AGO

NATIONAL

3.898

3.846

3.584

PENNSYLVANIA

3.890

3.825

3.556

ALLENTOWN/BETHLEHEM/EASTON

3.838

3.780

3.527

PHILADELPHIA 

3.857

3.807

3.563

As North America’s largest motoring and leisure travel organization, AAA provides more than 53 million members with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for the safety and security of all travelers. 

The East Penn Region, of AAA East Central, an affiliate of AAA and the Pennsylvania AAA Federation, has more than 280,000 members throughout its service area which takes in all of Lehigh County, and part of Bucks, Carbon, Chester, Montgomery and Northampton Counties.