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Gasoline, diesel production up
as retail prices fall
Sacramento - California refineries again increased their output of gasoline and diesel last week as retail prices continued their slow decline, according to the Weekly Fuels Watch Report issued today by the California Energy Commission.
For the week ending September 8, 2006, production of California gasoline averaged 977.714 barrels a day, an increase of 2.1 percent over the previous week's figures and a 7.1 percent increase when compared to this time last year.
California gasoline inventories were down 1.9 percent from the previous week and are slightly higher - 0.6 percent higher - than supplies at this time a year ago. The statewide average retail price of regular dropped 6 cents over the week, reaching $2.95 for the week ending September 11, 2006.
Since early August, the average retail price of regular gasoline has fallen 25 cents. Over that same time period, prices for crude oil from Alaska's North Slope have dropped approximately $10 a barrel. Conventional wisdom says that retail gasoline prices decline 2.5 cents per gallon for every $1-a-barrel drop in crude oil. ANS crude was selling for $64.31 a barrel on September 11, its lowest price since early April 2006.
Production figures for California's Ultra Low Sulfur Diesel (ULSD) remain strong. Diesel production rose 11.4 percent for the week and was 36.9 percent higher than last year's comparable output. Inventories of California ULSD were 14.9 percent higher than the previous week's and 51.1 percent higher than corresponding supplies this time last year. Retail prices of diesel fuel statewide fell 5 cents, averaging $3.13 a gallon for the week ending September 11, 2006.
Today's entire Weekly Fuels Watch Report can be seen on the Energy Commission's Web site at:
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The figures released today are preliminary and may change slightly over time. This summer the Energy Commission is also posting a weekly Petroleum Watch report, which provides useful background information on petroleum markets and California refineries. You can find the report on the Energy Commission's Web site at:
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