Gasoline Futures Jump As Demand Rises
Wednesday April 2, 1:55 pm ET
By John Wilen


(excerpts)
NEW YORK (AP) -- Gasoline futures prices rose sharply Wednesday after the Energy Department reported an unexpected jump in gasoline demand. Prices at the pump returned to record levels, and appeared poised to extend their march higher.

In its weekly inventory report, the Energy Information Administration said gasoline supplies fell by 4.5 million barrels last week, twice the decline forecast by analysts surveyed by Dow Jones Newswires. The EIA data also showed that demand for gas rose by nearly 1 percent when compared to the same week last year. That reverses a pattern in which demand had been falling.

Falling gasoline inventories and rising demand suggest supplies are tightening as the peak summer driving season approaches. That could boost gas prices further, and keep oil prices elevated.

"There's just an incredible seasonal tug for gasoline to move higher in April," said Tom Kloza, publisher and chief oil analyst at the Oil Price Information Service in Wall, N.J. "We'll see another record-breaking retail price (soon)."


http://www.usatoday.com/money/economy/2008-04-02-3815204975_x.htm


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