LI gas and fuel oil prices hold steady, for now

Gasoline and heating oil prices have stabilized on Long island in the past week as financial crises in Europe and anticipated moves by China to brake its economy have exerted downward pressure on crude oil prices. Gas went up a penny, and oil went up three-tenths of a cent.

But at least one oil analyst says the stabilization could be temporary amid growing world demand. Andy Lipow, president of Houston consultants Lipow Oil Associates Llc, thinks gas prices will rise 10 to 15 cents a gallon and heating oil about 5 cents a gallon in coming weeks.

Crude oil and fuel prices have been rising since the summer in part because the dollar has weakened against major foreign currencies, including the euro. A weaker dollar makes oil cheaper for investors with foreign currencies.

Meanwhile, says Lipow, rising demand has been squeezing supplies as world economies recover from the recession.

But there's also been downward pressure on crude oil prices from the financial crisis in Ireland and from expectation China will try to slow its economy. "We're seeing very significant volatility day by day driven by economic headlines," said Lipow.

On Long Island regular unleaded averaged $3.204 Wednesday, the AAA said, up a penny from a week earlier.

Prices vary widely. GasBuddy.com, based on motorist reports, Wednesday listed regular as low as $2.95 a gallon but as high as $3.79 at some others.

Kevin Beyer, president of the Long Island Gasoline Retailers Association, notes stations can legally set whatever price they choose.

But motorist Milford Zeiders of Deer Park, who contacted Newsday to report two stations in East Meadow charging $3.79, said, "Regardless of whether it's legal or not, it sounds like they're trying to take advantage of people."

Beyer says some stations whose prices are far above average might have been forced to jack up prices because of what they had to pay their distributors.

Heating oil averaged $3.278 on Long Island on Monday, according to a weekly survey of full-service dealers by the state Energy Research and Development Authority, up three tenths of a cent from a week earlier.