Retail gas prices rose last week, the first time that's happened in two months, as refiners shut down operations to account for very weak demand.
Government figures released Tuesday show that nationwide, gasoline prices rose an average of 2 cents to $2.489 per gallon. Prices had been heading lower as consumers curtailed road trips and overall drove fewer miles.
Prices rose most notably in the Midwest, with a jump of 8 cents. But the average price for the region of $2.44 is still 55 cents cheaper than last year.
A year ago, gasoline prices were in free fall as the economic crisis reversed the summer spike that had pushed pump prices above $3 across the country.
Gas prices in California and along the West Coast, which can distort the national picture, were at $2.90 and $3.02 per gallon, respectively. That's even after falling by 5 cents in the week. In every other region, the average gallon of gas cost less than $2.50, according to the Energy Information Administration.
Consumers may want to begin weighing what they loathe more, colder weather or higher gas prices. Old Man Winter may have a say in how much you pay at the pump over the next few months.
Refiners are taking facilities off line, making less fuel and other products because so little is being used. That may change if a winter blast sends demand for heating oil and other fuels higher.
If refiners are making more heating oil, they'll be making more gasoline, which would likely keep the country well supplied and prices comfortably low.
"If it gets cold early, it could mean that we're going to have some healthy refinery runs. So if you're not happy with gas prices, even around $2.50 per gallon, you may want to root for some cooler temperatures," said Tom Kloza, publisher and chief oil analyst at Oil Price Information Service.
Meanwhile, crude prices headed higher. A barrel of oil neared new highs for the year Tuesday as the dollar slipped against other major currencies, demonstrating how much the weakened U.S. currency can affect consumers across the world.
Prices have risen four straight days even though most energy experts believe that the U.S. government will report again this week that more unused gasoline and oil is heading into storage.
Rather than supply, the direction of oil is being dictated by the dollar.
The U.S. dollar index, where the U.S. currency is measured against other major currencies, hit a 14-month low Tuesday. Because crude is bought and sold in dollars, it essentially becomes cheaper for international investors who have flooded into energy markets.
Benchmark crude for November delivery gained 88 cents to settle at $74.15 on the New York Mercantile Exchange. At one point, prices reached $74.47, just short of the $75 reached on Aug. 25, when the driving season was still in full swing.
Natural gas has seen the same huge build up as factories shut down and major energy users cut back. Unlike crude, however natural gas is not bought and sold only in dollars. Natural gas prices tumbled 29.2 cents, nearly 6 percent, to settle at $4.588 per 1,000 cubic feet on Nymex.
Gasoline prices could be pulled higher if crude breaks above $75 Wednesday, Kloza warned.
"That $75 level is a bit like a jailbreak," Kloza said. "If we break through that, prices could run and that could pull gas and prices for other refined products higher."
In other Nymex trading, heating oil rose almost 3 cents to settle at $1.9234 a gallon, and gasoline for November delivery gained about 3.3 cents to settle at $1.8318 a gallon.
In London, Brent crude rose $1.04 to settle at $72.40 on the ICE Futures exchange.
