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Gas Prices Driven Higher: Tulsa Stations Charging $2.49 a Gallon

Posted on: Friday, 31 March 2006, 09:00 CST

By Russell Ray, Tulsa World, Okla.

Mar. 31--Gasoline prices in Tulsa spiked Thursday amid the rising cost of oil and wholesale fuel. The price of regular unleaded jumped more than a dime to $2.49 a gallon at some Tulsa gas stations. According to GasPricWatch.com, which uses volunteers to track U.S. pump prices, prices nationwide were averaging $2.55 a gallon late Thursday. Tulsa retailers raised prices following a sharp increase in wholesale gasoline. The average price of wholesale gasoline sold in the Tulsa area jumped 6 cents Thursday to $2.37 a gallon, up 15 cents just this week. In addition, oil prices topped $67 a barrel Thursday on the New York Mercantile Exchange. Oil rose 70 cents to close at $67.15 a barrel, a two-month high. The all-time high closing price was $70.85. Oil futures are 24 percent higher than this time last year. Consumers should be concerned by the arrival of high fuel prices so far ahead of the summer driving season, said AAA-Oklahoma spokesman Mark Madeja. It's a sign that prices could rise much higher this summer, when demand peaks. "It paints a very gloomy horizon," Madeja said. "We're going to have to be as proactive in what we're able to do, which is use less and shop wisely." The Department of Energy reported Wednesday that U.S. gasoline supplies had declined for the fourth consecutive week. Inventories have dropped to 216.2 million barrels, about the same as this time last year.

Supplies are down because some refineries have stopped making gasoline to conduct maintenance and prepare equipment for the production of special summer-grade gasoline, which is required to comply with clean-air laws. What's more, gasoline demand is up by 1.3 percent, the DOE reported. Still, Madeja said there's no real evidence to support today's higher fuel prices. U.S. oil supplies rose last week to 340.7 million barrels, 8.2 percent higher than a year ago, according to the DOE. Prices are being driven higher by the speculation of nervous energy traders in New York, Madeja said. "I really think the futures market is hyperventilating right now," he said. "Somebody needs to get those people a paper bag to breathe into before they lose complete consciousness." Wholesale gasoline futures, an indication of where pump prices are headed, rose more than 4 cents Thursday to settle at $1.995 a gallon (excluding taxes) on the Nymex. According to AAA's daily fuel price survey, Oklahoma motorists are paying, on average, $2.38 for a gallon of regular-grade gasoline. That compares with $2.12 a month ago and $2.07 a year ago. In Oklahoma City, pump prices are averaging $2.36 a gallon, up from $2.10 a month ago, AAA said. Prices in Dallas are averaging $2.52 a gallon. Average prices in Kansas City, Mo., and Little Rock are $2.43 and $2.44, respectively. ------------ Russell Ray 581-8380 russell.ray@tulsaworld.com

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Copyright (c) 2006, Tulsa World, Okla.

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Source: Tulsa World

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