Average price of U.S. gas remains steady at $2.59 a gallon

Average price of U.S. gas remains steady at $2.59 a gallon

Gas in San Francisco was the highest in the contiguous United States at an average of $3.44 a gallon.

Prices in the state are also up about 5 cents per gallon to $2.59 a gallon, according to AAA.

As more seasonal maintenance begins at US refineries over the next few weeks, utilization rates will decline and gasoline production will slip as well.

States with the lowest average prices last week included:SC ($2.24); MS and Alabama ($2.25); Missouri ($2.26); Arkansas ($2.27); Texas ($2.28); Tennessee ($2.29); Kentucky, Louisiana, and Oklahoma ($2.31). Including the change in gas prices in Sacramento during the past week, prices yesterday were 33.6 cents per gallon higher than the same day one year ago and are 3.7 cents per gallon higher than a month ago.

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"Gasoline should slide a few cents more this week, based on last week's decline in wholesale prices", said Mark Jenkins, AAA spokesman. Some areas could see $3 gasoline. Crude prices have been under pressure lately as forecasts for USA oil production over the next several years continue to indicate big increases. But prices by Monday had fallen and over the noon hour the price of the best grade of US oil was down more than $1 to $60.93 cents.

"Oil prices remain volatile yet several dollars off recent highs", said Patrick DeHaan, head of petroleum analysis for GasBuddy.

The U.S. Energy Information Administration expects the average national price of gasoline will average $2.60 a gallon for the year. Thus far, we have seen a market that's lacked solid upward movement when it usually sees exactly that.

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