Gas prices take post-Labor Day break

Motorists in this region are benefiting from the end-of-summer stability in prices at the pump.

One week past Labor Day, the average for a gallon of regular no-lead was down 1 cent in the five-county Philadelphia area (to $2.66), although it slipped up 1 cent in South Jersey (to $2.45).

The national average was up 3 cents over the last week (to $2.71).

Creeping up? In some cases, but nowhere near the highest recorded prices of $4.16 in the Philly area and $4 in South Jersey, both in June 2008, and $4.11 at the national level in July 2008).

"With the summer driving season behind us and motorists returning to normal work and school routines, gas prices continue to hold steady at their lowest point since February," said Jana Tidwell, public affairs specialist for AAA Mid-Atlantic. "Gas prices typically drop off in September and October, however, we're experiencing an active hurricane season in the Atlantic Ocean and September usually sees the most storms.

"Any disruption to U.S. refining capacity due to a storm would likely send crude oil and gas prices higher."

Diesel at the national level was $2.96, up 1 cent in the last week. The Philly area's diesel average was unchanged at $3.14; South Jersey was averaging 1 cent higher, at $2.75.

Meanwhile, oil prices jumped above $77 a barrel, extending gains for a second trading day after a leak forced the closure of a Chicago-area oil pipeline and disrupted supplies to U.S. Midwest refineries.

At the early-afternoon point in Europe, benchmark crude for October delivery was up 72 cents to $77.17 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $2.20 to settle at $76.45 on Friday.

Repair crews are closing in on the source of a leak but haven't found it yet, Sam Borries, on-scene coordinator for the U.S. Environmental Protection Agency, said Sunday. The 670,000-barrel-a-day pipeline run by Enbridge Energy Partners carries crude from Canada to the upper Midwest, and the supply disruption has caused a sharp spike in gas prices across that region.

"Markets tend to push higher amidst uncertainty in the process of discounting a worst-case scenario until definition is forthcoming," Ritterbusch and Associates said in a report. "We still view a significant sell-off as likely once the pipeline problem is resolved."

A weaker dollar also contributed to rising oil prices by making crude cheaper for investors holding other currencies.

In other Nymex trading in October contracts, heating oil was up 1.2 cents at $2.116 a gallon and gasoline added 1.47 cents to $1.988 a gallon. Natural gas fell 3.2 cents to $3.851 per 1,000 cubic feet.

In London, Brent crude rose 28 cents to $78.44 a barrel on the ICE Futures exchange.