9 Nov 2009 : After weeks of steady increases, gasoline prices began to retreat slightly this week. The average U.S. retail price for regular gasoline dropped to $2.68 a gallon on Friday, down two cents over the week and 34 cents above year-ago prices.Despite recent increases, gasoline prices are still $1.43 below the record price of $4.11 set last July.
Crude began the week at $77 a barrel and rallied through mid-week to above $81 a barrel, before retreating at week’s end to settle at $77.43 at Friday’s close, a 43-cent gain on the week. Crude’s mid-week rally was a result of a decline in U.S. crude oil inventories, a weakening dollar and slight demand increases.
However, Labor Department data released Friday showing an unexpected jump in the U.S. unemployment rate to 10.2 percent in October (exceeding forecasts of 9.9 percent), the first time in over 26 years the figure has seen double digits, sent crude oil down more than 3 percent. The higher-than-expected jobless rate led investors to question the pace of economic recovery and petroleum demand, causing a movement away from oil and into safer investments.
