Sun May 14 00:14:32 CDT 2000

Gasoline prices jump By Thomas Geyer, QUAD-CITY TIMES -- May 14, 2000 What happened to the price of gasoline? It went up, fast.

The problem, according to a recent report by John Cook of the U.S. Department of En-ergy's energy information agency, is concerned about the low amount of gasoline stocks and the need for refineries to make up the difference. That concern has boosted oil prices, the main factor in the cost of gasoline.

Gasoline inventories dipped to 198.8 million barrels March 10, then began rebounding. The supply was back up to 203.8 million barrels by March 31. May 5 inventories, however, dipped to 200.8 million barrels.

Conversely, oil stocks jumped to 308.6 million barrels May 5, 3.5 million barrels over the week before. This, however, is still on the low side, Cook said.

Prices for a gallon of regular unleaded at most stations in the Iowa Quad-Cities have jumped right back to where they were about eight weeks ago, when everyone was anxiously waiting for the Organization of Petroleum Exporting Countries, or OPEC, to open the tap on production.

The average price for a gallon of regular unleaded gasoline in the Iowa Quad-Cities is about $1.48. Prices range from a low of $1.42 a gallon to a high of $1.49 a gallon.

Things are worse in the Illinois Quad-Cities. Most stations are selling a gallon of regular unleaded for $1.57. A few stations still had prices set at $1.49. One station is selling a gallon of regular for $1.42. With that odd low price removed to avoid skewing, the average price of one gallon of regular unleaded gasoline in the Illinois Quad-Cities is about $1.55.

"Everyone expected these great reductions and then it was only for a short time," Melody Paulsen of Davenport said as she filled the tank on her 13-year-old station wagon. As a daycare center worker, she said she needs a car big enough for eight children. "But it's a gas guzzler."

According to statistics from the energy department, the average price nationally for regular unleaded was $1.45 May 8, up 3.5 cents from the previous week. It was the first time in seven weeks that the figure has increased. Before the jump, the average national price had been dropping, from a high of $1.53 a gallon March 20 to $1.42 May 1.

"There is an increased potential for gasoline price volatility this year over last," Cook said, adding that this is especially true during the peak summer months.

"Last year, increased gasoline imports met most of the summer demand increase, and increases in stock draws met almost all of the remainder. Production did not increase much. But this year, inventories will not be available and increased imports seem unlikely. Thus, increases in production will be needed to meet increased demand."

The ability to import gasoline this summer could be retarded by new gasoline standards in some areas of the country. Not all refineries that export to the U.S. will be able to meet the new specifications, he said.

The threat of that price volatility could put a damper on summer travel.

Jeff Halterman of Davenport, who moved back to the area from Alabama a few months ago, remembers the low prices of last summer. "Had they been this high then, we couldn't have come back to visit as often," he said. "We try to do a lot of summer traveling, but if the prices stay high, we'll stay around home more and find some things to do here."  bscriptions Sponsor Directory

QCTimes.com Local News Last updated on: Sun May 14 00:14:32 CDT 2000 E-mail this story to a friend. Gasoline prices jump By Thomas Geyer, QUAD-CITY TIMES -- May 14, 2000 What happened to the price of gasoline? It went up, fast.

The problem, according to a recent report by John Cook of the U.S. Department of En-ergy's energy information agency, is concerned about the low amount of gasoline stocks and the need for refineries to make up the difference. That concern has boosted oil prices, the main factor in the cost of gasoline.

Gasoline inventories dipped to 198.8 million barrels March 10, then began rebounding. The supply was back up to 203.8 million barrels by March 31. May 5 inventories, however, dipped to 200.8 million barrels.

Conversely, oil stocks jumped to 308.6 million barrels May 5, 3.5 million barrels over the week before. This, however, is still on the low side, Cook said.

Prices for a gallon of regular unleaded at most stations in the Iowa Quad-Cities have jumped right back to where they were about eight weeks ago, when everyone was anxiously waiting for the Organization of Petroleum Exporting Countries, or OPEC, to open the tap on production.

The average price for a gallon of regular unleaded gasoline in the Iowa Quad-Cities is about $1.48. Prices range from a low of $1.42 a gallon to a high of $1.49 a gallon.

Things are worse in the Illinois Quad-Cities. Most stations are selling a gallon of regular unleaded for $1.57. A few stations still had prices set at $1.49. One station is selling a gallon of regular for $1.42. With that odd low price removed to avoid skewing, the average price of one gallon of regular unleaded gasoline in the Illinois Quad-Cities is about $1.55.

"Everyone expected these great reductions and then it was only for a short time," Melody Paulsen of Davenport said as she filled the tank on her 13-year-old station wagon. As a daycare center worker, she said she needs a car big enough for eight children. "But it's a gas guzzler."

According to statistics from the energy department, the average price nationally for regular unleaded was $1.45 May 8, up 3.5 cents from the previous week. It was the first time in seven weeks that the figure has increased. Before the jump, the average national price had been dropping, from a high of $1.53 a gallon March 20 to $1.42 May 1.

"There is an increased potential for gasoline price volatility this year over last," Cook said, adding that this is especially true during the peak summer months.

"Last year, increased gasoline imports met most of the summer demand increase, and increases in stock draws met almost all of the remainder. Production did not increase much. But this year, inventories will not be available and increased imports seem unlikely. Thus, increases in production will be needed to meet increased demand."

The ability to import gasoline this summer could be retarded by new gasoline standards in some areas of the country. Not all refineries that export to the U.S. will be able to meet the new specifications, he said.

The threat of that price volatility could put a damper on summer travel.

Jeff Halterman of Davenport, who moved back to the area from Alabama a few months ago, remembers the low prices of last summer. "Had they been this high then, we couldn't have come back to visit as often," he said. "We try to do a lot of summer traveling, but if the prices stay high, we'll stay around home more and find some things to do here." 

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-- Martin Thompson (mthom1927@aol.com), May 14, 2000