Record High Gas Prices On The Map

National Average Now $3.577 A Gallon; Oil Prices Rise Sharply On Reported Persian Gulf Incident

(CBS/AP)  As expected, retail gas prices rose further into record territory Friday, nearing $3.60 a gallon. Meanwhile, oil prices rose sharply on news that a ship under contract to the U.S. Defense Department fired warning shots at two boats in the Persian Gulf.

At the pump, gas prices rose another 2.1 cents Friday to a record national average of $3.577 a gallon, according to AAA and the Oil Price Information Service. Gas prices have been following oil futures higher, but are also rising due to concerns about whether gasoline supplies are adequate to meet peak summer driving demand.

There is often a spike at the pump in the summer, but this time the rise in gas prices is extreme, reports CBS News correspondent Jeff Glor. The average fill-up is $8 more than it cost last year.

With gas prices higher than ever, thieves are targeting several U-Haul lots (listen) in Florida, reports CBS News correspondent Peter King.

Soaring gas prices are driving some commuters to embrace the somewhat radical idea of taking public transportation in car-centric Los Angeles, reports CBS News correspondent Ben Tracy. Train ridership in the city has increased by 700,000 passengers over last year.

Analysts expect gas prices to continue rising for at least another month; predictions of how high prices will rise range from $3.70 to $4 a gallon. To a large extent, how high gas prices peak depends on what oil does.

Lately, analysts have recently raised their oil price predictions to $125 to $130 a barrel. Earlier this week, the expiring May crude contract rose as high as $119.90 as investors scrambled to square positions.

However, the Federal Reserve is expected to cut interest rates less sharply next week than originally thought. Because rate cuts tend to weaken the dollar, a smaller than expected cut could push the dollar higher, and send oil prices down.

Meanwhile, crude prices rose on initial reports that a U.S. ship had fired on two Iranian boats; the news raised concerns that a conflict between U.S. and Iranian forces could cut oil supplies from the region. Later reports said the origin of the boats was unclear.

But the news was enough to send light, sweet crude for June delivery up to $119.55 before the contract retreated to trade up $2.94 at $119.00 a barrel on the New York Mercantile Exchange.

The incident at first appeared to be the latest in a series of encounters between U.S. forces and Iranian boats in the Gulf. Early this month, the USS Typhoon fired a flare at an Iranian boat that came within about 200 yards of the ship. In January, several Iranian boats made what the Navy described as provocative moves near a U.S. ship in the Strait of Hormuz. And in December the USS Whidbey Island fired warning shots at a small Iranian boat officials said was rapidly approaching the ship.

On Friday, oil prices were already up before the report on news of a pipeline attack in Nigeria and a looming refinery strike in Scotland.

In Nigeria, the Movement for the Emancipation of the Niger Delta, or MEND, said its fighters hit an oil pipeline late Thursday, the fourth conduit the group has attacked in the past week. MEND said the pipeline belongs to a Royal Dutch Shell PLC joint venture. A Shell spokesman confirmed one of its pipelines had been hit, but provided no additional details.

Earlier this week, Shell said an earlier attack cut its Nigerian oil production by about 170,000 barrels a day.

Separately, workers at an ExxonMobil Corp. joint venture in Nigeria cut production by an unspecified amount to demand more pay.

Adding to the supply concerns, BP PLC said it will shut down a 700,000 barrel-a-day pipeline system that carries oil from the North Sea to refineries in the U.K. on Saturday in anticipation of a strike at Scotland's Grangemouth refinery expected to begin Sunday.

The refinery supplies power and steam to the pipeline; if it shuts down, the pipeline can't operate.

Oil's rise came as the dollar strengthened. A stronger dollar typically encourages selling by making commodities such as oil less effective hedges against inflation, and by making oil more expensive to overseas investors. Analysts say the dollar's steady decline over the past year is the chief culprit behind this year's rapid rise in oil prices.

But, notes Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Ill., "that connection between oil and the dollar can be broken easily by supply issues," which drove trading on Friday.

In other Nymex trading Friday, May gasoline futures rose 3.79 cents to $3.0565 a gallon after earlier rising to a new trading record of $3.0815, and May heating oil futures rose 5.47 cents to $3.3028 a gallon. May natural gas futures rose 16.2 cents to $11.105 per 1,000 cubic feet.

In London, Brent crude futures rose $2.86 to $117.20 a barrel on the ICE Futures exchange.

ENERGY Business, Record High Gas Prices
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GASOLINE PRICES REACH U.S.AVERAGE OF $3.50 [HOUSTON CHRONICLE NewsMail. Response by Howard Stern. 4/22/2008 Sugar Land, TEXAS
Do the Corporate and [including the Texas State Government Agencies] represent special interests, not the interests of the public?
Do they really want new inexpensive Fuels to relieve the pain of the steadily higher prices at the Gas Pump?

There are too many people with vested interests in Texas and Florida who want the ''Status Quo'' and provide very little space for a small innovative company..
For the past six months (and many years before that period) I have been ''shouting in the wilderness'' and to major News Media that I have TECHNOLOGY and SYSTEMS to provide as much as 12+ Billion gallons* [U.S.] of CLEAN BioEthanol at less than half the price of corn and other grains used to produce ETHANOL. I spent more than 30 years in R&D. and now need to Partner because it is a Business that requires adequate manpower who can move quickly to enter the markets and can operate on a worldwide basis. If The Chronicle wants to print the story in the public interest, and wants ''the rest of the story'' it is available. [e-mail] Not seeking funding for first commercial unit. Responses from Major International Companie(s) Only. Howard Stern

[michellem99-2009]

dear jerryomare,
yep,,But I did not vote for clinton,bushes..
ye said it and yes yer right.
We were talking about nov. bush gets an f- for a grade im eye I have read their platforms and none of them are any better than bush. This is the first time am able to follow this on computer.
I miss the America of years ago and that wars are a waste and our leaders are more blind minded. We do our best. The rich get richer and us poor get poorer..something is wrong.. police state..I hope not..I don''t like the changes and it is not the America I grew up in..I am 53..Barbara

[downsteamjim]

No drilling in ANWAR, no nuclear power, no drilling offshore, etc. Economics 101: If you reduce supply and demand grows, the result will be higher prices.

[ubrew12]

Will Dems be better? Well, they''ll have to increase taxes, but keep spending down so that the debt can be addressed.

Welcome to ''cant do'' America. Time for Democrats to assume the unhappy task of paying the ''Reagan/Bush'' debt. This means increased taxes, but no relief for working families stressed by high gas prices, and increasingly worthless home values.

Hope hapless Americans know who to blame for this disaster, but I doubt it. Republicans have been BETTING on it for years.

[ubrew12]

The Republicans have had 7 years of TOTAL control of our Federal govt to PROVE they are the party of ''small government''. After 30 years of claiming that title, it was time, finally, to WALK THE TALK. What do we have? Increases in defense spending by 40%, a whole new multi-billion bureaurocracy (Homeland Defense) busy putting submachine guns on NY subways ''for your protection'', a huge Farm Bill, the largest increase in entitlement spending in 30 years, etc. By cutting taxes on the rich, Bush has DOUBLED the national debt. He''s basically telling our children, who''ll have to PAY this debt, to ''go fvck yourselves'' (in Cheney language).

What Repubs have done instead is USE the war on terror to create a police state in the U.S. You HAVE no functional privacy left anymore.

[ubrew12]

Xlib said: "based on that you must agree that the socialist way is the answer to all our woes, correct?? "

I don''t know if its socialism, but I think we should increase taxes on the well-to-do to something closer to what we had in this country when it was GREAT, between 1930 and 1980. Reagan devastated this country. It just took 26 years for you to get the bill, and Bush is STILL trying to hide it from you. But he can''t hide it from international bankers, who are dropping dollars like it had the plague, causing us to spend more on gasoline, etc.

Don''t worry. The economy will recover when China comes in and buys us. That was always was Reaganomics was about. Apparently, you prefer it that way.

[xlib]

jerryomara-so how are the hospital closing going on?? How''s that little issue of radical muslims preaching in the streets. You know, smugness does not agree with you. You almost sound canadian.

[xlib]

rudy654-so evidently you agree with the empty suits plan to redistribute wealth?? Cutting though all the slogans, speeches and such, that is his plan. So, based on that you must agree that the socialist way is the answer to all our woes, correct?? See, we''re in the middle of a presidential campaign and we must listen to what they are saying and proposing as whoever will be in charge of fixing all our problems. So, based on that, what the empty suit proposes is quite relevent to this story.
Another point, the dem congress is doing nothing absolutely nothing and using this issue as a poltical ploy. So, your response?

[bgwinnett]

I wish I could reply to this, but unfortunately for us, he''''s 100% correct. How unfair for us that we don''''t have a REAL leader of this country. We are completely adrift in a world of political problems.

Posted by hungry1968 at 07:52 AM : Apr 27, 2008

Britain is drifting along too. Prime minster Brown is seemingly, in office but not in power.

[xlib]

We here in the nanny state of NY, where chuck & hill are supposedly looking out for us in congress, have just been treated to the second thurway toll hike in less than six months. The reason we were given is that fewer people are driving the thruway due to high gas prices therefore they had a decrease in revenue. Therefore, higher tolls. So, drivers get punished for doing as suggested, change driving habits.
While this was done at the state level the outcome is the same, we, those of us that work, get the shaft. The dem congress better do something and stop using this as a political ploy. WE need to buidl refineries for the long term, roll back the horrendous taxes on fuel placed by the state & feds, and, drill for our own oil.
The old saying "last one out turn out the lights",not here in NY state, there will be no lights to turn out. Working people are leaving the state in droves. No wonder.

[hungry1968]

Hi From England you allowed Busgh 8 years to destroy your economy and now your surpised that the dollar is looking more and more like A South African Rand or Indian Rupee. Gasoline is not that much higher idiots the dollar is not worth it any more. But dont worry that rebate check be coming that will fill your tank ha ha HA

Posted by jerryomara at 01:53 AM : Apr 27, 2008





I wish I could reply to this, but unfortunately for us, he''s 100% correct. How unfair for us that we don''t have a REAL leader of this country. We are completely adrift in a world of political problems.

[neoconrcrazy]

Great job bushit !

you''ve practically ruined everything you got your hands on - even got 600''000 iraqis killed and our boys too along the way.

[nonayabiness]

newsjunky5

You are right. There is NO reason foreign companies or countries should be managing, building, maintaining, or owning any real estate, roads, or ports here.

Then again, I''d really like to see a whole lot of CEO and other fluff positions farmed out to other countries. We might have been better off farming out the Presidency the last 8 years to some other land. Of course, I say that facetiously...but, could we hardly be any worse off? Unfortunately, probably yes.

[nonayabiness]

I, for one am proud to say I didn''t vote for Mr. Bush either time. Yes, he is responsible for a lot of damage our country is going through. I think most American''s believe the war in Iraq was unfounded and unnecessary.

Mr. Bush is responsible for McCain not having a chance at getting my vote. I cannot support a Republican President at this time. I tend to vote the individual, the issues and whom I feel is most honest and accountable, not by party affiliation alone. However, I can''t vote Republican this year.

[newsjunky5]

Every cloud has a silver lining. High gas prices mean that buying the nation''s public highways and charging us to drive on them just got a little worse as an investment.

[marcpcbs]

Posted by harp1963
Greed is ruining America.
___________________
patriotic9 is full of psycho-babble

[marcpcbs]

Posted by Element51
"Does anyone know why there is no comment section on the marijuana story? Seems odd that they put the story up but won''''t allow any discussion. Just curious."
______________________
I agree, the contents of pot smoke are poisonous. The doctors probably didn''t want to give an organ to somebody trying to kill themselves.

[marcpcbs]

Sniff, Sniff
Do you smell a lame duck?

[rudy654-2009]

Posted by BLACK_SHHIT at 11:39 PM

When Obama is the leader of the wealthiest nation on earth and when and if he decides to spend all our money on government contractors who seemingly have a bottomless pitt for swallowing it all up, then you can start to blame Obama. But until then, you sound like fanatic weirdo trying to blame someone who has nothing to do with the present situation.

[rudy654-2009]

Apparently they decided that we can pay 4 bucks a gal.,
so all this posturing is just pretending they care.

Posted by mediapreachr at 09:59 PM

And that is despite the fact that Americans have already cut gas consumption considerably, and will probably do more cutting. However, the industry is prepared. This last time they deliberately cut supplies so as to highjack the price despite the lower consumption. They are hell-bent on getting every last thin dime from our economy along with subsidies in the form of energy packages we are also paying for. Latest word: by next year we will be paying 6 dollars a gallon, at least.