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Gasoline, oil prices continue climb Gasoline futures soar to all-time high on U.S. supply worries Lawmakers are searching for solutions to the recent surge in gasoline prices.

NBC’s Dan Lothian reports.

MSNBC STAFF AND WIRE REPORTS April 30 — Oil prices marched higher on Monday, dragged up by benchmark U.S. gasoline futures, which struck a new all-time record amid persistent worries of a summer supply crunch in the United States. U.S. LIGHT CRUDE futures rose 53 cents to $28.80 a barrel on the New York Mercantile Exchange. Meanwhile, U.S. gasoline futures charged higher again, touching $1.159 a gallon, the highest level since the launch of motor-fuel futures on the New York exchange in December 1984.

Gasoline futures have jumped more than 25 percent in the past month as fears of regional shortfalls have been fueled by extremely low inventories, dwindling reserves of summer grade gasoline and a series of refinery problems.

The advance came as finance ministers from the Group of Seven leading industrialized countries met over the weekend and issued a statement reiterating the importance of lower energy prices and stable oil markets.

French Finance Minister Laurent Fabius said on Sunday that current oil prices could damage an already vulnerable global economy. Fabius said $28 a barrel oil was too expensive and that crude between $20 and $25 would be preferable.“We have to have a more balanced situation. Today, in my mind, it’s still too high,” Fabius said.

France and many other European countries were hit by angry protests over soaring energy bills when Brent hit 10-year highs above $35 a barrel last September.

Consumers face a replay of last year’s price run-up because of a looming gasoline shortage in the United States, the world’s biggest energy market.

Gasoline has underpinned the energy complex in recent weeks amid concerns that lowly U.S. stocks will be insufficent to meet peak summer driving demand when the vacation season kicks in at the end of May.

Lean inventories saw some relief last week when industry data recorded a rise in stocks and a near-50 percent reduction in the year-on-year inventory deficit to 4.8 million barrels.

A flood of imports from Europe and a pick-up in production rates at U.S. refineries boosted stockpiles. Traders will be eagerly awaiting fresh weekly stocks data for last week, which will be released by the American Petroleum Institute after the close of business on Tuesday. Saudi Oil Minister Ali al-Naimi reassured oil markets on Friday, saying that OPEC oil producers would ensure that U.S. oil supply needs are met during the summer.

“The U.S. is the most important client for the sale of oil. If there is a need, as sellers we have to take care of the client,” said Naimi, who was in Washington to meet U.S. Energy Secretary Spencer Abraham.

He declined comment on any possible changes the Organization of the Petroleum Exporting Countries might make in production policy when the cartel meets on June 5-6.

Other OPEC members have said that the group is unlikely to lift current supply curbs before the third quarter. OPEC has cut output twice this year by a total 2.5 million barrels per day to counter a seasonal second-quarter dip in demand and the knock-on effect on petroleum consumption of a slowdown in global economic growth.

The International Energy Agency, the West’s energy watchdog, has urged OPEC to release more oil to the market soon, warning that refiners will otherwise scramble to cover demand of winter heating fuels later in the year. © 2001 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters.

-- Anonymous, April 30, 2001

Answers

Sweetie bought gas from Costco yesterday, premium; I believe it was $1.58.

-- Anonymous, April 30, 2001