Gas prices up 1 cent in Phila., South Jersey

The average price of gas went up by 1 cent on both sides of the river, AAA Mid-Atlantic reported today.

The five-county Philadelphia area stood this morning at $2.72 for a gallon of regular no-lead.

South Jersey's average is $2.51 today.

The U.S. average was unchanged overnight, at $2.63, for the third day, and where it's been for much of the last two weeks.

Diesel prices followed the pattern: Up 1 cent in the Philadelphia area (to $3.04) and in South Jersey (to $2.71), but unchanged in the country overall (at $2.82).

Meanwhile, oil prices dropped to near $73 a barrel after a strengthening U.S. dollar extended a four-day sell-off in crude to two-month lows.

At early afternoon in Europe, benchmark crude for January delivery was down 64 cents to $73.29 in electronic trading on the New York Mercantile Exchange. The contract fell $1.54 to settle at $73.93 Monday.

The dollar, boosted by a better than expected U.S. jobs report last week, helped push oil prices out of a two-month range of $75 to $82.

Investors have been buying crude as a hedge against inflation as the dollar has slid this year amid massive government stimulus spending and low interest rates. When the dollar rises, traders tend to sell their positions in oil.

In other Nymex trading in January contracts, heating oil was up 0.03 cent to $2.01 while gasoline rose 0.29 cent to $1.9435. Natural gas rose 1.3 cents to $4.984 per 1,000 cubic feet.

In London, Brent crude for January delivery fell 37 cents to $76.06 on the ICE Futures exchange.