Oil puts brakes on gas price retreat

BALTIMORE - Recent gas prices have declined following the near record-setting highs last month.

The news is welcome for motorists looking to kick off the official start of the summer driving season last weekend.

While slight declines continued this week, gas prices stabilized in most areas in response to continued volatility in the crude oil market.

The national average price for regular grade was $3.79 a gallon on Friday, 2 cents cheaper than last week, 19 cents less than last month, but prices remain $1.07 higher than one year ago.

Although gas prices have dropped 19 cents since hitting this year's high mark of $3.98 a month ago, the retail cost of gasoline remains at price levels not seen since July 2008.

In a short trading week, a weak U.S. dollar sent crude oil prices to a three-week high on Tuesday, above $103 per barrel.

The disappointing economic reports sent crude oil down below the $100 mark at mid-week.

On the international front, the fall in prices was tempered by continued unrest in the Middle East, with the fighting in Yemen intensifying.

“Gas prices continue to be influenced by the crude oil market, as seen this week when prices at the pump stabilized somewhat following crude oil’s rise earlier in the week,” said Ragina C. Averella, Manager of Public and Government Affairs for AAA Mid-Atlantic. “Yet despite recent volatility, analysts believe gas prices will continue to drop to within the $3.50 to $3.60 per gallon range by month’s end.”

Information from AA Mid-Atlantic.