TAMPA – The price of oil fell slightly after the value of the U.S. dollar increased against the euro.
Last week reflected the largest weekly gain for the dollar so far this year. A stronger dollar reduces the appeal of crude oil as a commodity and ultimately pushes oil prices lower. Although oil prices decreased, retail gas prices inched up again and are expected to increase this week.
Tensions with Iran and positive economic headlines continue to put upward pressure on both oil and gas prices. A barrel of oil settled Friday at $106.70 on the New York Mercantile Exchange – $3.07 less than the week prior. However, the national average for regular retail gasoline jumped another 8 cents from last weeks average.
“The issues affecting oil and gas prices are relatively the same as the past few weeks, with Iranian tensions dominating energy market headlines. As long as conflict surrounds Iran with the threat of blocking the Strait of Hormuz, we’re going to see elevated prices at the pump,” said Jessica Brady, AAA spokeswoman, The Auto Club Group. “The national average price for a gallon of gas has steadily increased since January 27, when the average was $3.38. Gas prices are expected to climb well into spring and summer.”
The national average price of regular unleaded gasoline is $3.76, an 8-cent increase from last week. Tennessee’s average price of $3.59 rose 3 cents from last week.
Visit AAA’s Daily Fuel Gauge Report to find national, state, and local metro market retail gasoline prices.