Motorists should see pump prices slide again after they spending a little more to fill their tanks over the Labor Day weekend.
The national average for a gallon of unleaded regular was $2.682 Tuesday, according to AAA, Wright Express and Oil Price Information Service. That’s 0.5 cent higher than a week ago and 9.9 cents higher than a year ago.
Drivers in the West, Illinois and New York state saw the highest prices over the weekend, ranging from $2.794 to $3.525 a gallon. The lowest prices were in Texas, parts of the Midwest and the South.
Analysts expect retail prices to fall now that the summer driving season has ended with plentiful supplies still in storage. In addition, consumers are watching their dollars carefully as unemployment remains high.
“Demand probably did pick up a little bit going up into the holiday, which probably kept the prices up there,” PFGBest analyst Phil Flynn said.
The price of crude and other energy products retreated as fears about the global economy resurfaced following reports that European banks may have more risky government debt on their books than previously thought.
Benchmark crude for October delivery fell $1.56 to $73.04 a barrel in morning trading on the New York Mercantile Exchange.
The Wall Street Journal reported that EU stress tests of 91 banks in July understated some lenders’ holdings of potentially risky debt. The Financial Times said Germany’s top 10 banks will have to raise as much as $135 billion to meet new capital requirements.
Abundant supplies of oil will pull prices down over the next two months, with fewer drivers on the road and the winter heating season still to come, MF Global analyst Andrew Lebow said.
In other Nymex trading in October contracts, heating oil fell 1.34 cents to $2.0439 a gallon, gasoline dropped 2.56 cents to $1.8839 a gallon and natural gas lost 5.5 cents to $3.884 per 1,000 cubic feet.
In London, Brent crude slipped down 49 cents at $76.38 on the ICE Futures exchange.