Colorado’s average gasoline price rose above $3 a gallon Wednesday for the first time since August, pushed by crude oil that threatened to break $100 a barrel but then fell back.
Self-service regular in Colorado averaged $3.03 a gallon Wednesday, compared with $2.21 one year ago, according to AAA.
After reaching a record high of $3.34 a gallon May 24, prices steadily fell until mid-October, when rising costs of crude oil began hitting the gasoline market.
“Our prices had been lagging the increase in crude-oil prices” because of low seasonal demand after Labor Day, said Stan Dempsey Jr., president of the Colorado Petroleum Association. “Now, our low-demand period is coming to an end and we’re starting to head into the holiday season with more demand for fuel.”
Oil prices stalled Wednesday in their anticipated rise toward $100 a barrel after a Department of Energy report said oil inventories fell less than expected last week.
Light, sweet crude for December delivery fell 33 cents to close at $96.37 a barrel on the New York Mercantile Exchange. Before the report’s release, prices rose to $98.62, an intraday record.
Analysts are divided on their outlook for oil. Some believe that geopolitical tensions could push crude well above $100, with gasoline rising to $4 a gallon by next summer.
Others believe that speculators have pushed oil prices too high and that supply-and-demand fundamentals will bring costs back down.
Steve Raabe: 303-954-1948 or sraabe@denverpost.com
