Pump prices hit high, on way down to $2.00 range

The state’s latest fuel price survey confirms what the driving public has known: pump prices reached record levels this month. On July 15th, the average price for a gallon of regular unleaded in Iowa was $2.22. That’s a record according to Jennifer Moehlmann, a fuel price analyst for the state. “But we are seeing prices start to decline and I think we’ll probably see prices decline all the way to between $2.00-$2.10 within a week or so,” Moelhmann says. The recent price spike was driven, in part, by the fear that oil production in the Gulf of Mexico might be impacted by tropical storm Dennis. The latest hurricane isn’t creating those kinds of fears. Hurricane Emily does not look like it will do that much damage, according to Moehlmann, and will spare most of the gulf unless the storm takes a hard right turn. Another turn of events has been the price of oil on the world market. On Friday, crude oil closed at $58.10 per barrel. That’s quite a bit less than highs that hit above $61 per barrel, and gasoline prices have reacted. Moelmann says demand is driving fuel prices, though, and if more Americans than expected take to the roads for an August vacation, gasoline prices may rise again.