Oil, gas continue record runs
Regular averages $3.67 per gallon nationally, rose 2 cents since Thursday in Buffalo Niagara
By John Wilen
- ASSOCIATED PRESS
Updated: 05/10/08 7:03 AM
-
- Paula Crayne refuels her Federal Express delivery truck with diesel in Springfield, Ill., on Friday.
NEW YORK — Oil rose above $126 a barrel for the first time Friday, bringing its advance this week to nearly $10, as investors questioned whether a possible confrontation between the United States and Venezuela could cut exports from the OPEC member. Gas prices, meanwhile, rose above an average $3.67 a gallon at the pump, following oil’s recent path higher.
On Friday, the Wall Street Journal published a report that suggested closer ties between Venezuelan President Hugo Chavez and rebels attempting to overthrow Colombia’s government. Chavez has been linked to Colombian rebels previously, but the paper reported it had reviewed computer files indicating concrete offers by Venezuela’s leader to arm guerillas. That appears to heighten the chances that the United States could impose sanctions on one of its biggest oil suppliers.
“If we put on sanctions, I’m sure Chavez would threaten to cut off our oil supply,” said Phil Flynn, an analyst at Alaron Trading Corp. “Obviously that would have a major impact on oil prices.”
Light, sweet crude for June delivery vaulted to a new record of $126.25 on the New York Mercantile Exchange before retreating slightly to settle up $2.27 at a record $125.96. Oil futures set new records for the fifth straight day, and ended the week up $9.64, or 8.3 percent.
Oil’s surge is pushing retail gas prices higher. The national average price of a gallon of regular gas jumped 2.6 cents overnight to a record $3.671 a gallon according to a survey of stations by AAA and the Oil Price Information Service. The Energy Department expects prices to peak at a national average of $3.73 in June, though many analysts say national average prices could rise as high as $4. Consumers in many regions, including parts of California and Hawaii, are already paying that much.
A gallon of regular averaged $3.80 — up 2 cents from Thursday — in Buffalo and Niagara Falls on Friday, according to AAA’s Daily Fuel Gauge Report. Mid-grade averaged $4.07; premium, $4.15; and diesel, $4.53.
In New York City, a gallon of regular averaged $3.91; mid-grade, $4.18; premium, $4.27; and diesel, $4.74.
