The average price for unleaded regular gasoline burst through $2.48 gal this morning, and there is probably enough momentum to move above $2.50 gal this week. However, very soft world financial markets should provide speed bumps to a market that has behaved like a runaway train since January 20.  Oil cannot move sharply higher when the world’s financial wealth is in retreat.

   Weakness in overseas markets and a plunging Dow and S&P helped cool the heels of oil bulls this morning, with crude oil down by more than $1.25 bbl and gasoline off by 4-5cts gal in early futures’ trading. But to put things in perspective: gasoline futures had advanced by more than 60cts gal in five weeks, so a 5cts gal drop doesn’t represent a trend change.

The nationwide unleaded regular average of $2.481 gal on the street reflects an increase of 20cts gal from the same day last year, and 31cts gal from February 5, 2007.   Penny per day increases are often common in March and April, so it would be premature to call for anything but a respite.

 California now has two or three metropolitan statistical areas (MSA’s for you census fans) that find the average retail price above $3.00 gal. San Francisco leads the nation with a retail average of $3.08 gal in its MSA.  The entire state has an average price of $2.88 gal.

  The country’s cheapest fuel shows up in Rocky Mountain states like Idaho, Utah, and Wyoming where prices under $2.30 gal are still common. Those markets often are weak in midwinter but there is every indication that Rocky Mountain states will be sharply higher by the time driving season rolls around.

   There are some 15 states that now have average retail numbers of above $2.50 gal. They include California, Connecticut, Florida, Hawaii, Illinois, Maine, Michigan, Nebraska, Nevada, New York, Oregon, Pennsylvania, Washington, Wisconsin, and West Virginia.