Pump Prices Creep Up As Oil Records Fall

Crude Settles Above $127 For The First Time, Forecasting A Summer Of Expensive Road Trips

(AP)  More gas and oil records fell Monday as retail fuel prices struck new highs and crude settled above $127 for the first time, tightening the squeeze on drivers planning holiday road trips next weekend.

Light, sweet crude for June delivery jumped 76 cents to settle at a record $127.05 a barrel on the New York Mercantile Exchange. Prices rallied at one point to within a nickel of Friday's record trading high near $128 a barrel.

Meanwhile, Americans are now paying an average of $3.79 for a gallon of regular gas, according to a survey by AAA and the Oil Price Information Service. Diesel, used to transport a wide range of goods, now costs $4.52 a gallon. Those prices, both records, are likely to keep rising, following crude's upward track.

"We're looking at $4 a gallon (for regular nationwide) once we get past Memorial Day and into June, given the oil prices we're seeing today," said Geoff Sundstrom, fuel price analyst at AAA.

In Pittsburgh, some drivers said they had been forced to adjust their spending habits because of higher prices at the pump, which are up about 17 percent from a peak at this time last year.

Rose Bonesso, a nonprofit worker, said the rising cost of gas has "hugely" affected her spending, and that she was trying to make fewer car trips from her suburban home.

"I definitely think a lot more before I either go to Starbucks or do anything like that because I know, all right, I've got at least $40 to $45 I've got to put in my tank this week," she said while buying gas on Pittsburgh's South Side.

Drivers in some parts of the country are already paying considerably more than the average. Prices in parts of California have been stuck above $4 a gallon for weeks now, although the statewide average is down to $3.96. Prices in Alaska and Connecticut are averaging just above $4 a gallon.

Those soaring prices - which compare with a national average of about $3.23 a year ago - are putting a strain on family finances and prompting some motorists to look for alternatives.

Jeanne Prows of West Chester, Ohio, said she and her husband are considering riding to work together to save on gas.

"We really don't have the extra cash this summer," she said.

In New Haven, Conn., drivers paid $4.05 for regular unleaded gas Monday.

Stacey Holmes, a teacher who lives and works in New Haven, said the high prices recently led her to buy a $20 used bicycle online so she can bike the three miles to work to save money.

"It just makes you a lot more aware of your budget," Holmes said. "I don't eat out much at all any more."

Sally Richmond, a paralegal from New Haven, said she's "a little angry, confused" at the gas prices. She said she now drives slower, which has helped.

"We can't cut back any more than we have," Richmond said.

A report released Sunday showed retail prices topped an average $4 a gallon for the first time in two metropolitan areas: Chicago and New York's Long Island. The Lundberg Survey of 7,000 stations nationwide found the cheapest city to be Tucson, Ariz., where a gallon of regular sold for $3.48 on average.

Oil prices shot higher Monday on a report that the Organization of Petroleum Exporting Countries would not increase production before its next meeting Sept. 9. Algerian Energy Minister Chakib Khelil, the current OPEC president, was quoted in government newspaper El Moudjahid as saying that "current prices aren't linked to the law of supply and demand."

The announcement came days after Saudi Arabia's oil minister said the world's largest oil producer had raised production by 300,000 barrels a day earlier this month.

That increase, while largely ignored by the market, should help grease a tight global market, said John Felmy, chief economist for the American Petroleum Institute, the industry's leading U.S. trade group.

"Certainly seeing increased production is helpful in terms of increased supplies," Felmy said.

Meanwhile, Holly Corp. said a key unit at its New Mexico refinery was shut down for repairs, cutting estimated May gasoline production by as much as 756,000 gallons per day. The outage is unlikely to significantly affect fuel prices, said Jim Ritterbusch, president of oil trading advisory firm Ritterbusch & Associates.

Trading is likely to be volatile on Tuesday as the June contract for crude expires on the Nymex. Traders typically adjust their holdings as a contract is about to expire, and that often leads to big price swings.

In other Nymex trading, heating oil futures fell 2.77 cents to settle at $3.6751 a gallon. Gasoline futures rose 1.31 cents to settle at $3.2366 a gallon. Natural gas futures sank 14 cents to settle at $10.927 per 1,000 cubic feet.

July Brent crude rose 7 cents to settle at $125.06 a barrel on the ICE Futures exchange in London.

[veteran72]

This is the old "frog in the slowly heated water" angle. Look for $5 regular before election day.
I bet Shrub and Darth are high-fiving while yelling, "Cha-CHING"!!!!

[underdogus]

Renewed expectations that the dollar will continue to weaken against foreign currencies such as the euro and the yen are likely to keep pushing oil to new records.

[randynason]

Hu-ray, hu-ray, hu-ray... Step right up... get yo'' fossil fuel rat hea, folks.
It''s not as though we haven''t been warned for the last three decades that these days would arrive. Changes never take place in preparation. They only happen when it''s at the point they are forced.

[noloyalisti]

Well, we did let the oil companies take over the government. Not to mention we have to pay for our waste and our travesties we are running in Afghanistan and Iraq.

We lost the dot com boom and the real estate boom so the neo con men had to come up with an oil boom.

[xalen54]

I say people can start using less oil by driving less. If you are in a small town then you can surely ride your bike or walk. We are going to get to the point when we need laws to reduce our use of oil. Such as 1 car per family or getting rid of things like Nascar (Nascar can especially go, nothing but people driving laps & wasting gas...)

[incog-nito]

This is becoming a daily headline. Another day, another new record.

[incog-nito]

This is the old "frog in the slowly heated water" angle. Look for $5 regular before election day.
I bet Shrub and Darth are high-fiving while yelling, "Cha-CHING"!!!!

Posted by veteran72 at 06:39 PM : May 19, 2008

I bet gas prices will mysteriously drop before election day to help the GOP candidate. By then people will think $4.50 is a bargain.

[shanev137]

The lies are getting harder and harder to hide.

Oil prices are the highest they''ve ever been in the history of the world and there is no shortage.

The average worker bee is still too stupid to figure out what''s going on, so now speculators will keep taking gas up to $5 and $6 a gallon....and then maybe to $10...or until all you boneheads figure it out.

[sistatee-2009]

Wake me when the revolution starts.

[shanev137]

Somebody should at least have the decency to lie to us and tell us that a few major refineries are busted somewhere and that''s why our country is being bankrupted, or that it''s a more active tornado season than normal.

Come on....give us some better lies.

[sgtrds-e4]

The oil companies are gorging themselves on our blood while they still have that puppet in the White House. they''re terrified of a Democratic victory in November so they''re going to gouge as much as they can until then.

[sgtrds-e4]

Come on....give us some better lies.

Posted by shanev137 at 07:47 PM : May 19, 2008

They don''t even bother lying anymore. It''s just stick ''em up and give us your money.

[jeepmanjr]

"I definitely think a lot more before I either go to Starbucks or do anything like that because I know, all right, I''ve got at least $40 to $45 I''ve got to put in my tank this week," she said while buying gas on Pittsburgh''s South Side.

What, do you ride a Vespa? Try $90 to fill the tank of my diesel pickup!

All the while oil mongers ride around in their Mercedes'', BMW''s and Cadillacs and talk about profits not being what they expected. I''m putting off a 700 mile trip to my parent''s house because of these thieves!

I''ll say it again, this plays right into the ploys of the global warming left, oil investing right and the hip pockets of big oil.

Doh...Iran made another threat!! Up the oil prices a few more cents.

Give me a freekin'' break already!!

[naucoming4u]

Wake me when the revolution starts.

Posted by SistaTee at 07:40 PM : May 19, 2008
...........

Yeah, don''t bother setting your alarm clock!

With all the entertainment choices, 500+ channels, online this and that, the vast majority of fat, dumb, and happy Americans will never know what hit them until its too late.

But I''ll be looking forward to seeing both you and SgtRDS in whatever concentration camp the Bush regime decides to put us dissenters in.

[jeepmanjr]

Hey SistaTee...I hate to be the bearer of bad news, but you sound like a true idiot. Perhaps you & Obama got it goin'' on. The problems with this country start with way-out-there folk like yourself. Now go fill your gas tank, buy a box of wings and tune in to CNN for the latest leftist.

I have met the enemy and he is us.....

[jeepmanjr]

NAUcoming4U is hot on your heals....!

[jeepmanjr]

NAUcoming4U is hot on your heals....!

[brtzg]

Who is responsible for the high prices? It''s not Bush, not the government, not the oil companies. It''s the people who are charging $125 or more for the oil - OPEC and the oil producing countries. It''s that simple. It''s highway robbery by Saudi Arabia that sells for $125/barrel what costs them $10 to produce. Where is the rage against the ROOT CAUSE?

[naucoming4u]

I have met the enemy and he is us.....

Posted by jeepmanjr at 08:49 PM : May 19, 2008
...........

Throughout history, every great country has had a large group of people who come to a breaking point at some point in time. That large group of people I refer to is, of course, the middle class like you and I.

Read about the French Revolution... you will find some eerie similarities.

I long for the day to see Bush and Cheney in the same final predicament as Marie Antionette!

[bgwinnett]

But I''''ll be looking forward to seeing both you and SgtRDS in whatever concentration camp the Bush regime decides to put us dissenters in.

Posted by NAUcoming4U at 08:41 PM : May 19, 2008

Or room 101

[dowjones20k]

One has to love the ignorance of folks and how the oil market works ...

I challenge those of you who feel lied to and taken advantage of to look around the world and see what others are paying for a gallon of gasoline ..

The USA has subsidized oil for decades .. and now its catching up to us in the form of a weak dollar ... and that along with hedge funds, foreign investors and no true oil futures market are whats causing the run up .. not to mention the FACT that not ONE oil refinery has been built in the USA for the past 30 years .. and the dogooders who protect some of the largest oil reserves right in our own backyard ...

Oh and dont forget all of the big ol SUV driving idiots who were not old enough to remember 1979 ...

Old saying is pay me now or pay me later ... and thats what the story is ...

Enjoy !!

[naucoming4u]

I challenge those of you who feel lied to and taken advantage of to look around the world and see what others are paying for a gallon of gasoline ..

Posted by dowjones20k at 09:17 PM : May 19, 2008
..............

I challenge you to find out why those prices in those countries are higher, rather than just looking at the sign at their petrol stations and making excuses for our oil industry.

The gas prices in other advanced/industrialized nations are mostly due to the taxes. Equalize the taxes at the pump price and you will see that Americans pay more. Partially due to the weakened dollar, but partially due to the unregulated oil industry which has been one of the biggest factors of this mess we are in.

[gce65]

Gas was $1.27 when Clinton came into office. It averaged about $1.15 over his 8 years.

[dowjones20k]

Partially due to the weakened dollar, but partially due to the unregulated oil industry which has been one of the biggest factors of this mess we are in.

Posted by NAUcoming4U at 09:25 PM : May 19, 2008

Uhhh what about demand and refining capacity there tonto ... 21 million barrels a day here in the USA .. and to think that politiacns feel that stopping the strategic reserve only stopped 70,000 barrels a day
a drop in the bucket ... another feel good do nothing effort.

Your allegations are nothing more than talking points ...

I can recall traveling in Europe in the 70''s and paying $3.00 a gallon for fuel then .. taxes may indeed play a part of european prices ..

but here in the USA it is indeed demand and refining that continue to be the achilles heel .. not to mention the fact that dogooders killed Nuclear power and then cried about acid rain .. then clamor for solar and wind .. and wave .. but the regular American who drives his car 25,000 miles a year is the most likely culprit .. too stupid to figure it out ..

stop driving so much and stay home for a while ... or pay the price ... and stop whining ...

[gce65]

If only this was France and the year was 1789. Bush could be Louis. Cheney could put on a wig and be a fat Marie Antoinette.
"Ahhh, monsieur. Bon soir! Guillotine for two?"

[gce65]

$4 per gallon oil. And it''ll never go substantially back down. Now there are two other emerging powers that can suck up our excess demand: India and China.

[shanev137]

Posted by brtzg at 08:54 PM : May 19, 2008


You''re in way over your head and should try studying how the futures markets work sometime.

Opec does not set the price of oil.

Huge, elephant-sized speculators who control trillion of dollars on the open market, wake up every morning and decide how much per barrel OPEC will get for their oil that day.

Again for the 500th time, it has absolutely nothing to do with supply and demand or our government.

The -ONLY- solution at this point is for our country to drill it''s own oil and take it off the world market...so it''s not bought or sold for $130 a barrel.

There''s enough oil in Alaska and the Gulf to last us 4 lifetimes.

[patriotic9]

It''''s highway robbery by Saudi Arabia that sells for $125/barrel what costs them $10 to produce. Where is the rage against the ROOT CAUSE?


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Posted by brtzg at 08:54 PM : May 19, 2008

You probably are unaware of the fact that PSYCHOTIC CHRISTIANS believe in taking OIL in cheaper prices from Saudi Arabia and in return supporting their those enemies who were brought into Palestine after WWII to occupy the land of those Palestinians by force who had nothing to do with 9/11.

Why should Saudis care about the economy of those people who are #1 supporter and protector of RACISM and INJUSTICE (existance of Israel on Palestinian map, far away from the Concentration Camps in Germany; Human beings being GOD-CHOSEN or GOD-NEGLECTED based on their RACE not on their actions).

RACISM and INJSUTICE are the symptoms of PSYCHOSIS "CHRISTIANITY"!

[patriotic9]

It''''''''s highway robbery by Saudi Arabia that sells for $125/barrel what costs them $10 to produce. Where is the rage against the ROOT CAUSE?


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Posted by brtzg at 08:54 PM : May 19, 2008

You probably are unaware of the fact that PSYCHOTIC CHRISTIANS believe in taking OIL in cheaper prices from Saudi Arabia and in return supporting their those enemies who were brought into Palestine after WWII to occupy the land of those Palestinians by force who had nothing to do with the actions of HITLER..

Why should Saudis care about the economy of those people who are #1 supporter and protector of RACISM and INJUSTICE (existance of Israel on Palestinian map, far away from the Concentration Camps in Germany; Human beings being GOD-CHOSEN or GOD-NEGLECTED based on their RACE not on their actions).

RACISM and INJSUTICE are the symptoms of PSYCHOSIS "CHRISTIANITY"!

[dowjones20k]

China has 10,000,000 vehicles right now .. or 1 for every 85 residents. ..

The Chinese predict that this will grow at 6 million a year to 2010 and surpass the total number of vehicles in the USA by 2030.

So we aint seen nothing yet .. and watch out there will be a war for oil like no one has seen once tyou get the USA, China, India, Russia and all the other countries involved ... $4.00 will look cheap ...

[wogerwabbit]

Bush is an idiot. We should have invaded Sudia Arabia and he would have gained his objectives years ago... they look like freakin'' pushovers... except for all the military equipment we donated. I saw a picture of him kissing one of the Saudi guys over there, so I''m not real suprised he didn''t invade them... kinda looks like our defenses were already penetrated.

[wogerwabbit]

Posted by dowjones20k at 09:47 PM

Negotiate agreements or war, those are our choices. I think we should talk first before we invite dowjones10k to the discussion.

[patriotic9]

Bush is an idiot. We should have invaded Sudia Arabia and he would have gained his objectives years ago... they look like freakin'''' pushovers... except for all the military equipment we donated. I saw a picture of him kissing one of the Saudi guys over there, so I''''m not real suprised he didn''''t invade them... kinda looks like our defenses were already penetrated.


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Posted by WogerWabbit at 10:15 PM : May 19, 2008


Why shouldn''t we have helped Saudis in the destruction of Israel on Palestinian land, far away from the Concentration Camps in Germany, to enjoy oil in cheaper prices, which is in the best interest of the United States?

Why did our PSYCHOTIC CHRISTIAN LEADERS decided to give billions of dollars a year to the EUROPEAN INVADERS IN PALESTINE to buy HATRED, TERRORISM and 9/11 against GOD-NEGLECTED AMERICANS and UNHOLY LAND UNITED STATES?

CHRISTIANITY is no longer only a PSYCHOSIS but a tool to fool the people of the United States!

[l8c6]

It''''''''''''''''s highway robbery by Saudi Arabia that sells for $125/barrel what costs them $10 to produce. Where is the rage against the ROOT CAUSE?

Posted by brtzg at 08:54 PM : May 19, 2008

Sadly this is the attitude of many, many who go to church and praise the lord.

The right wing has been calling this process the "free market". Good ol'' "american" corporations have been inflicting this on U.S. citizens for years with examples like pharmaceuticals charging U.S. citizens shockingly higher prices than citizens of other countries.

[trenticus-2009]

Rediculous!

[trenticus-2009]

Saudi Arabia said no to oil output because the U.S. dollar wasn''t worth much. True. But here is what the U.S. should do now to all these oil rich countries. You want our food we will sell it to you but at a Premium and I mean a PREMIUM!

[trenticus-2009]

One more thing.. You can''t grow much in sand and dry heat!

[sistatee-2009]

Be sure and give that stimulus check back to the oil companies.

[fabrat1]

HaHa no thanks I think I will buy a bicycle with mine.

[naucoming4u]

Be sure and give that stimulus check back to the oil companies.

Posted by SistaTee at 11:00 PM : May 19, 2008

HaHa no thanks I think I will buy a bicycle with mine.

Posted by fabrat1 at 11:09 PM : May 19, 2008
..............

Good choice, but please do America a favor and make sure your bicycle is made in America and NOT purchased at WalMart.

I''ll by buying transit tickets with my stimu-less check.

[naucoming4u]

stim-u-less .... screw-u-more!

Brought to you by corporate America(?) and their representatives in Washington DC.

[rudy654-2009]

Really, people. Don''t travel this holiday weekend. Make the oil people sit there and wonder what they did wrong. Don''t be out there proving AAA right about more Americans than ever will travel this weekend. We can''t stop these thieves if we keep paying them off.

[rudy654-2009]

Saudi Arabia said no to oil output because the U.S. dollar wasn''''t worth much. True. But here is what the U.S. should do now to all these oil rich countries. You want our food we will sell it to you but at a Premium and I mean a PREMIUM!


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Posted by trenticus at 10:45 PM

Bravo! I agree. Tell them those Al Qaeda supporters that food and oil are a two way street. Oil doesn''t come our way, food doesn''t come your way.

[seymourtn]

In 2006 Democrats stated We will lower gas prices. Elect us. They (Democrats) said whom do you trust most to lower gas prices. I give up Who?

[rudy654-2009]

In 2006 Democrats stated We will lower gas prices. Elect us. They (Democrats) said whom do you trust most to lower gas prices. I give up Who?


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Posted by seymourtn at 11:35 PM

In 2003 Rush Limbaugh claimed that invading Iraq and taking over their oil would lead to the cheapest gas prices ever and the end of the Democrats. I don''t remember the democrats claiming what you are claiming. I do remember the Republicans saying that war in the Middle East would bring down gas prices. Guess they were wrong.

[seymourtn]

Democrats Ask, Who Do You Trust to Lower Gas Prices?
By Susan Jones
CNSNews.com Senior Editor
April 27, 2006

(CNSNews.com) - Democrats say they have a "simple strategy" that will help them win the midterm elections. They plan to ask voters who they trust to lower prices at the pump.

In an email message to supporters on Wednesday, the Democratic Senatorial Campaign Committee touted a Democratic plan to lower the price of gas immediately (and temporarily).

Sen. Bob Menendez (D-N.J.) has proposed a 60-day "holiday" on the federal gasoline tax that supposedly would lower prices by nearly 20 cents a gallon. "It''s something we can do right now to ease the burden on middle-class families across America," the DSCC said.

DSCC Deputy Executive Director Anne Lewis said as far as she''s concerned, "There are only two groups of people who love high gas prices: Big Oil executives collecting record profits and the Republican senators who collect their campaign contributions."

Lewis then noted that four Republican senators (all running for re-election in November) have received hundreds of thousands of dollars in contributions from "Big Oil."

"Democrats have always been on the side of middle-class families struggling to get by. Republicans have always sided with big business and big profits," Lewis said.

[element51]

The sad thing is that we have NOTHING to bargin with the arabs. They do not need our food, and we have outsourced everything else. At one time we had weaponry to bargin with but now they can get that from many other sources. The fact is, they don''t need us for anything. Bush can kiss their azzes til his lips go numb and they won''t budge. It''s time for the US to go back to the drawing board and come up with some new plans. The old ways will no longer be successful. We absolutely must have some new leadership to take us in the direction we must now go. I don''t care who it is...America needs a real leader. We can overcome this if we have the right leadership and we ALL pull together...dems and reps alike. Instead of hating each other let''s focus that energy on solving the problems we face together. Please!

[patriotic9]

Saudis are treating Americans the same way like Bush''s mother treated Katrina victims!
I hope you guys remember her statement for Katrina victims;"Those people were under-privilaged anyway".

[nmsuip]

"...The sad thing is that we have NOTHING to bargin with the arabs..."

Actually, we do. We are still the largest consumer market for energy in the world.

Time for price controls. We will pay a maximum of $x per barrel of oil regardless of what overvalued price that speculators drive it to. Take it or leave it. If you don''t take it, you no longer have access to our market.

[veteran72]

This is the old "frog in the slowly heated water" angle. Look for $5 regular before election day.
I bet Shrub and Darth are high-fiving while yelling, "Cha-CHING"!!!!

Posted by veteran72 at 06:39 PM : May 19, 2008

bet they aren''''t


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Posted by jamesm12341 at 07:09 PM : May 19, 2008
+ report abuse

Bet you wear pink panties,....very, very, frilly ones....LMMFAO...