TAMPA, Fla. (Nov. 28, 2010)—The price of crude oil moved slightly higher last week after positive economic news boosted investor confidence. Crude oil rose $2.35 to settle Wednesday during the shortened trading week at $83.86 a barrel on the New York Mercantile Exchange.
Investor optimism rose after the Labor Department stated U.S. jobless claims dropped by 34,000—a sign oil demand will start to accelerate. Increased consumer spending during the holiday season will give investors another shot of optimism that the economic recovery will quicken.
On the other hand, foreign economies, such as those in Spain and Ireland, are not faring so well and concern the European debt crisis will spread are keeping crude prices from spiking above $85 a barrel.
"Crude prices will likely remain between $80 and $85 a barrel this week as news of strained foreign economies and an uptick in the U.S. economy will cause prices to yo-yo," said Jessica Brady, manager, AAA Public Relations. "Retail gas prices will increase slightly this week with the national average fluctuating between $2.85 and $2.88."
The national average price of unleaded regular gasoline is $2.86 per gallon, 1 cent less than last week. Florida’s average price of $2.85 reflects a 2-cent decrease from last week. Tennessee’s average price of $2.67 and Georgia’s average price of $2.72 both reflect a 3-cent decrease from last week, respectively.
