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JUMP AT THE PUMP: Gas Prices Climb Higher As Supplies of Fuel Fall

Posted on: Thursday, 16 March 2006, 06:00 CST

By Dan Piller, Fort Worth Star-Telegram, Texas

Mar. 16--Fort Worth-area motorists have seen the average price at the pump climb from $2.26 per gallon a week ago to $2.40 Wednesday, according to the Web site fortworthgasprices.com, with some prices for self-serve unleaded as high as $2.59 per gallon. The Web site uses volunteer spotters to update its reports daily.

The shutdown of a Caribbean refinery and the planned conversion of major refineries to production of environmentally friendly gasoline blends are blamed for the price increase.

Supplies of fuel stock fell by 900,000 barrels last week, the U.S. Energy Department reported Wednesday. The decline was attributed to refinery turnaround to prepare to process the special blends of gasoline used during warmer months to comply with environmental regulations.

"The jump in retail gas prices is partly due to the seasonal production switch from winter- to summer-grade gasoline," said Rose Rougeau of AAA Texas. She predicted that with the recent decline in crude-oil prices, gasoline prices may fall later.

Additionally, Amerada Hess said that it had unexpectedly shut down a refinery in St. Croix that it operates with the Venezuelan national oil company. The refinery could be out of action for up to two weeks, Hess said.

The announcement Tuesday had pushed up gasoline futures by 12.27 cents per gallon to $1.86. On Wednesday, gasoline futures fell by 3.7 cents per gallon to $1.83.

Crude oil dropped by 93 cents in trading Wednesday on the New York Mercantile Exchange, closing at $62.17. Prices had been forced up in recent weeks because of disruptions in Nigeria as well as continuing uncertainty about Iran's nuclear program.

But those factors were offset partially by a forecast from the International Energy Agency, which lowered its forecast for 2006 worldwide demand by 290,000 barrels per day. The IEA said persistently higher prices had cooled demand for gasoline in Asia.

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Dan Piller, (817) 390-7719 danpil@star-telegram.com

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Copyright (c) 2006, Fort Worth Star-Telegram, Texas

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Source: Fort Worth Star-Telegram (Fort Worth, Texas)

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