Oil prices in Maine at highest level ever

AUGUSTA – The Maine State Planning Office weekly survey of home heating oil prices found the current statewide average cash price of heating oil to be $2.12 per gallon, which is up 4 cents from last week and 61 cents from last year at this time. This is the highest historical Maine statewide average cash price for heating oil unadjusted for inflation. It is very close to the national average.

Kerosene costs an average of $2.37 per gallon, up 3 cents since last week.

The lowest price recorded in the survey was $1.94 a gallon, in the western region of the state, and the highest price recorded was $2.22 in the southwest region.

Despite rising prices and strong demand, supplies appear to be adequate for the rest of the heating season. Crude oil prices closed Monday at $56.62 a barrel.

Oil prices retreated after surging above $57 a barrel early Monday as the record-breaking rally over the past several days lost some momentum.

“The market got overheated,” said Ed Silliere, vice president of risk management at Energy Merchant LLC in New York. “It went too far too fast.”

The benchmark oil contract set an intraday high of $57.60 per barrel last Thursday.

While the market has taken a breather, prices remain high – and on London’s International Petroleum Exchange, Brent crude for May edged up 6 cents to settle at $55.65 a barrel.

Oil is 50 percent more expensive than a year ago but still well below the inflation-adjusted peak above $90 a barrel set in 1980.

Because there is plenty of oil on the market, crude prices should come down from current levels, Silliere said.

Still, others are doubtful that OPEC will be able to soothe markets by increasing official output.