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LAKE STATES TRENDS -Continuedupward pressure on crude oil and gasolineprices is several quantum levels worsethan Chinese water torture,” said BrianBethune, chief U.S. economist for GlobalInsight.With gas prices up more than a dollar pergallon year-to-date, Bethune said it’s likely“another heavy shoe (will) drop on consumerspending in 2008.”EIA DISCUSSES FACTORS THATAFFECT GAS, DIESEL PRICEAs costs continue to rise at the pump,consumers are paying more and moreattention to what goes into transportationfuels. In light of this issue, the EnergyInformation Administration (EIA) recentlytackled the four cost components in theretail price of a gallon of fuel (gasoline ordiesel).Those factors include: Crude Oil, thecost of crude oil to refiners (theComposite Refiners Acquisition Cost)divided by the average retail price of regulargasoline; Taxes, average state andfederal taxes divided by the average retailprice of gasoline; Refining; the differencebetween the average spot price of gasolineor diesel fuel (in such cities as Chicago,Ill.) and the Composite RefinersAcquisition Cost; and Distribution andMarketing, the percentage of the averageretail gasoline price not reflected in theother three components.According to the EIA, the Refining andDistribution and Marketing componentscan vary widely from month to month,because there is a lag between the spotprice change and the retail price change.As of press time, Crude Oil consumedapproximately 65 percent of the price fora gallon of diesel, followed by Refining(10 percent), Taxes (10 percent) andDistribution and Marketing (8 percent).For up-to-the-minute changes, visitwww.eia.doe.gov.In related news, freight companies hopethat rising fuel costs are stabilizing,although the price of crude oil is still upsome 30 percent year-to-date. As of thiswriting, oil prices had fallen more than$2.50 a barrel, bringing pump prices fordiesel below recent highs including theLake States region (still up approximately$1.77 from year ago levels).•WEST COAST TRENDS -Continued from page 18work and commercial construction sectors.The California source said he expects thecurrent business climate to continue untilthe housing market picks up, possiblyduring the early part of 2009. “We’re sotied in through different avenues to housingthat it is the driving force to a robustbusiness,” he said.NEW HOME SALES FALL,EXISTING SALES RISEON WEST COASTAccording to the CommerceDepartment, sales of new single-familyhomes recently fell 11.6 percent on theWest Coast. Meanwhile, the NationalAssoc. of Realtors (NAR) recently posteda 2 percent increase in existing home saleson the West Coast, to an annual rate of1.91 million units.Nationwide, new home sales fell 2.5 percentto a seasonally adjusted annual rateof 512,000 units. The CommerceDepartment similarly reported a decline inthe inventory of new homes for sale of 1.7percent to 453,000 units, a 10.9-monthsupply at the current sales pace.“The fact that new home sales are occurringat such a slow pace in the middle ofthe home buying season, with inventoriesEVEN IN THE AGE OF AUTOMATION,THE PERFECT HARDWOOD IS STILLHAND PICKED.Please turn to page 84YOU’RE LOOKING AT the last step in our grading process. These few upholdour Northwest Hardwoods’ Graded for Yield® philosophy, to give our customersmore of what they need and less of what they don’t. So each of our custom grades,including yours, literally rests in their hands.For more information, call 866.870.3040, and Northwest Hardwoods are registered trademarks ofWeyerhaeuser. © 2008 Weyerhaeuser Company. All rights reserved.weyerhaeuser.com/HIPSEPTEMBER/2008 75