The average price of regular gasoline at the pump in the U.S. rose 9 cents in the past two weeks to a record $3.20 a gallon, according to oil industry analyst Trilby Lundberg's survey of 7,000 filling stations nationwide.
Gasoline futures rose to $2.6943 a gallon on the New York Mercantile Exchange on March 7, the highest closing price for a contract closest to delivery since the reformulated fuel began trading in 2005. Crude-oil futures climbed to a record $106.54 a barrel the same day.
We will probably see 20 or 30 cents more at the pump very soon, possibly within a month, Lundberg said in an interview today. This is all if crude oil prices don't slide substantially, and it doesn't seem likely that they will.
The previous record of $3.18 a gallon, set in May, remains the highest on an inflation-adjusted basis, she said.
Rising prices have caused demand for gasoline to fall 1.3 percent from a year ago to 9.07 million barrels a day, a U.S. Energy Department report on March 5 showed.
Oil prices increased as the dollar weakened to a record low against the euro. Investors use physical commodities, including oil and gasoline, to hedge against a weakening dollar. As the dollar declines, dollar-denominated commodities become cheaper.
The euro climbed to $1.5459 on March 7, the highest since the currency's debut in 1999.
Last week, the Organization of Petroleum Exporting Countries refused to raise production after President George W. Bush said it would be a mistake to let high energy prices slow the economy.
Oil also rose after Venezuelan President Hugo Chavez sent 10 tank battalions to the border with Colombia in response to a Colombian air raid against a guerrilla camp in Ecuador. Venezuela and Ecuador are the only OPEC members in the Western Hemisphere.
The highest average price for self-serve regular gasoline was $3.58 a gallon in San Francisco, Lundberg said. The lowest was in Cheyenne, Wyoming, at $2.95 a gallon. On New York's Long Island, the price was $3.30 a gallon.
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Sunday, March 9, 2008
U.S. Gasoline Price at Record $3.20
Thursday, February 14, 2008
Oil prices extend rise above $93 a barrel
Oil up on market gains, supply worries, as Venezuela continues to battle with Exxon Mobil.
Oil prices extended their modest rise Thursday, supported by Wall Street's overnight gains and threats to U.S. oil supplies.
Wall Street rallied Wednesday after the U.S. Commerce Department said retail sales rose unexpectedly last month. Energy investors often view the equity market as a barometer of economic health, worrying that any slowdown in growth will lead to a corresponding slump in energy demand.
Traders also remain concerned about Venezuelan President Hugo Chavez's threat to halt oil sales to the United States in response to Exxon Mobil Corp.'s bid to freeze billions of dollars in Venezuelan assets. Exxon Mobil is challenging the nationalization of its Venezuelan oil ventures in U.S. and European courts.
A federal judge in New York on Wednesday confirmed the freezing of $300 million in cash held by Venezuela's state-run oil company, finding it probable that Exxon Mobil will win its legal battle against the company.
But Venezuelan Oil Minister Rafael Ramirez vowed earlier in the day to defeat Exxon Mobil in its legal battle with Petroleos de Venezuela SA, which has threatened to halt crude sales to the U.S. oil company
"We're going to come out of this battle successful," Ramirez told a rally of oil workers in the eastern state of Anzoategui. "Exxon Mobil isn't pleased with our government. It matters little to our government what Exxon Mobil thinks."
Light, sweet crude for March delivery rose 19 cents to $93.46 a barrel in in electronic trading by late morning in Europe ahead of the opening of floor trading on the New York Mercantile Exchange.
The contract rose 49 cents to settle at $93.27 a barrel on Wednesday.
Brent crude added 78 cents to reach $94.10 a barrel on the ICE Futures exchange in London.
Investors were also heartened by U.S. President George W. Bush's signing Wednesday of the $168 billion economic stimulus package that will send tax rebate checks to millions of Americans.
Oil prices have fallen from a January record above $100 a barrel largely on concerns about economic growth and falling demand for oil and gasoline.
Traders shrugged off a mixed U.S. government inventory report that said crude oil supplies grew 1.1 million barrels last week, less than the expected 2.7 million barrel increase.
The U.S. Energy Information Administration said gasoline inventories rose 1.7 million barrels while inventories of distillates, which include heating oil, dropped 100,000 barrels last week.
Heating oil futures added 0.48 cent to reach $2.6204 a gallon while gasoline prices rose 0.78 cent to $2.3977 a gallon.
Natural gas futures rose 11.2 cents to $8.50 per 1,000 cubic feet.
Friday, October 26, 2007
Supply fears push oil above $92
Oil prices have risen to yet another record after an unexpected fall in US crude stockpiles added to fears over supplies for the winter months ahead.
US light, sweet crude rose $1.74 to $92.22 a barrel before falling back to $91.86 by close of trade in New York.
Meanwhile London Brent also reached a high of $89.27 before later settling at $88.69, up $1.21 cents on the day.
Analysts said threats of US sanctions against Iran and tension on the Iraqi border had also helped the rally.
According to some analysts, oil may well reach $100 a barrel.
US crude oil stocks unexpectedly fell by 5.3 million barrels last week.
Earlier in the week, prices had retreated from previous highs following concerns about the health of the US economy and expectations of more output from oil producers' cartel Opec.
Despite the latest price surge, Opec members said they would stick to their existing production targets.
The group has already pledged to increase production by 500,000 barrels a day starting from 1 November, but the US is calling for an additional rise.
