Crude prices up but US retail gasoline still falling

Crude oil prices were higher Tuesday after a new report showing that manufacturing activity is on the rise in the New York region and on a weaker US dollar that made purchases in other currencies cheaper for buyers.

In midday trade in New York, March contracts for West Texas Intermediate crude had added $2.82 to $76.95 per barrel on the New York Mercantile Exchange, while Brent crude was up $3.20 to $75.71 per barrel on the ICE Futures Europe exchange in London.

Nymex March gasoline was up 7 cents to $2 per gallon while April heating oil futures were also 7 cents higher, to $1.99 per gallon.

Natural gas futures, however, had dropped 9.7 cents to $5.37 per 1,000 cubic feet despite more snow in the US Midwest and predictions that temperatures will remain colder than normal in many parts of the United States at least until the end of the month.

Despite the climb in futures prices, the at-the-pump price for a gallon of gasoline in the US dropped to $2.61 per gallon on average nationally, with prices now lower than $2.40 per gallon in some states in the Midwest, according to AAA.

While retail prices for gasoline remain around 65 cents above prices last year at this time, they are now 16 cents lower than their peak so far this year.