West Texas Intermediate (WTI) crude oil declined by $5.05 per barrel in the past three weeks, with the near-month futures contract closing at $77.16 per barrel on July 26, according to the most recent Lundberg Survey of U.S. fuel markets.
It is the equivalent of 12.04 cents per gallon (CPG). The combined WTI-Brent crude oil average dropped a bit less, the equivalent of 10.7 cents.
In the same three weeks, the national average retail price of regular-grade gasoline slipped 2.95 CPG.
The average wholesale gasoline price edged down just 1.13 cents since July 12, causing retail margin to narrow by 1.94 cents. It is now 38.11 CPG on average.
It would have been a greater decline nationally if not for Midwest prices shooting up due to the storm-driven closure of Exxon's Joliet, Illinois, refinery.
Retail diesel fuel prices fell more, 4.69 CPG during the three weeks, to $3.9225, a help to the broad consumer economy.
Motorists currently are paying 9.03 CPG less on average for regular grade than they did one year ago, a positive factor for demand. The average diesel price, however, is practically the same as it was a year ago.
Joliet's affected units are undergoing comprehensive testing and repairs are already beginning. Wholesale gasoline prices are already in down-correction Lundberg's daily wholesale price surveys show that the average branded regular-grade rack price is already down 11.28 CPG in the three days since its July 23 peak, to 256.67 CPG on July 26.
At retail, Chicago's average has shot up 30.07 cents since July 12. The weighted wholesale average increased less, allowing the apparent retail margin to swell by 8.3 cents to 52.24 cents.
Meanwhile in another big high-cost market, the San Francisco Bay Area, the weighted wholesale price moved up a small 0.87 CPG, while retail prices were still plunging. The retail price drop of 8.99 cents, to $4.6920, slashed retail margin by 9.53 cents. For San Francisco retailers, the July 26 apparent margin of 63.23 cents is not a sunny environment.
Click here for previous Lundberg Survey reports in CSP Daily News.
Trilby Lundberg is publisher of the Lundberg Survey of U.S. fuel markets. Lundberg Survey Inc. is based in Camarillo, California.
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