From the AP:
NEW YORK — Crude oil prices climbed today after the U.S. government hiked its prediction for summer gasoline prices, citing ongoing problems at the nation’s refineries.
Bombings at three major oil pipelines in Nigeria also heightened supply worries in the energy market.
The U.S. Energy Department today revised its forecast for the summer’s average pump price up 14 cents to $2.95 a gallon, and said it projects prices to rise above $3 a gallon again in August. The short-term energy outlook also predicted that continued growth in global oil demand would keep the oil markets tight.
Gasoline prices at the pump continued to creep higher today, and the average U.S. retail price of gasoline was $3.036 a gallon, according to AAA — just about two cents short of the record high reached September 2005 after Hurricane Katrina struck the Gulf Coast.
Gasoline prices have soared this year as refinery shutdowns depleted U.S. inventories to levels not seen since late 2005. Though gasoline futures on the New York Mercantile Exchange have pulled back recently, as traders anticipate the Energy Department will report on Wednesday a rebound in gasoline inventories, pump prices have yet to follow suit.
I’m buying a tricycle.