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CAMARILLO, Calif. - A national survey shows gas prices have dropped 15 cents a gallon in the last two weeks. The average price of a gallon of regular gasoline at self-serve stations was $3.70 Friday. Mid-grade was at $3.83 and premium was at $3.95. That's according to the Lundberg Survey of 7,000 gas stations nationwide, released Sunday. Diesel was at $3.82. The California average was $3.94, down 16 cents from two weeks ago. Gas was cheapest in St. Louis, Mo., at $3.37 for a gallon of regular. It was most expensive in Anchorage, Alaska, at $4.34. Despite the drop, gas nationally was almost 95 cents higher than a year ago. Prices so far this summer peaked July 11 at $4.11 for a gallon for regular. http://news.yahoo.com/ SINGAPORE - Oil prices were steady Monday in Asia above $114 a barrel as a strengthening dollar offset continuing tensions between the U.S. and Russian over the conflict in Georgia. Light, sweet crude for October delivery was down 5 cents at $114.54 a barrel in electronic trading on the New York Mercantile Exchange by midday in Singapore. The contract tumbled $6.59 on Friday to settle at $114.59 a barrel. "If the U.S. dollar is rising, commodities take a hit. It's been a huge factor." said Gavin Wendt, head of mining and resources research at consultancy Fat Prophets in Sydney. Speaking at an economic conference Friday, Federal Reserve Chairman Ben Bernanke said he would "act as necessary" to control inflation comments which helped strengthen the dollar against rival currencies. A falling dollar encourages selling from investors who bought crude oil and other commodities as a hedge against inflation and weakness in the U.S. currency. The euro fell to $1.4760 on Monday. Wendt said he expects oil prices to rise this year as global demand for energy, led by developing economies such as China and India, outstrip supplies. "We may see this rally in the U.S. dollar continue in the short-term, but you have to differentiate between speculation and the underlying demand for commodities," Wendt said. "The majority of the increase in commodities over the last five years has been driven by demand from China and the emerging economies being so great that supplies haven't been able to keep up." Supporting oil prices are ongoing tensions between Russia and the U.S. over Russia's brief war in the former Soviet republic Georgia. http://news.yahoo.com/s/ap/20080825/ap_on_bi_ge/oil_prices;_ylt=Ar2ZzUvELF1PijT4cmUHuxRv24cA |