Oil futures jumped past $80 per barrel yesterday, buoyed by the declining value of the U.S. dollar.

It marked the first time in more than a year that oil rose past the $80 mark.

Crude prices have risen quickly over the last month thanks to weakening U.S. currency. As the dollar loses value, crude investment increases, driving up the price.

As a result, pump prices for gasoline and diesel fuel continued to increase. Retail gasoline prices jumped 1.3 cents Tuesday to an average of $2.577, according to price tracking services, up nearly 10 cents vs. a week ago.

Analysts expect gas and diesel prices to remain high. Even though government reserves are up, which usually signals a drop in gas and diesel prices, fuel inventories are expected to drop by two million barrels as refiners cut production.

Oil prices hovered around the $50 per barrel mark for most of the year, and began creeping up midway through the third quarter.

Increased fuel prices foretell a continuing decline in driving miles, already well down vs. 2008 even after slight increases earlier this year. And the higher oil prices put added pressure on raw material costs for tiremakers. (Tire Review)