End of summer gas spike hits drivers

The average price of a gallon of regular gas increased 1.5 cents nationally to $3.84 in AAA's latest reading Tuesday, the first significant move in gas prices since late August. The August run-up in prices was caused by Gulf Coast refinery disruptions as Hurricane Isaac approached.

Prices were expected to retreat quickly once the Gulf region's facilities came back online. But Tom Kloza, chief analyst at the Oil Price Information Service, said the retreat in prices following the storm is being delayed because Isaac hit so close to Sept. 15. That date is important because it is when the

United States switches from a more expensive summer blend of gasoline to a cheaper winter blend. As that date approaches, refineries don't want to be caught with too much of the more expensive gasoline. So in the week before the changeover, they cut back on their summer blend production, tightening the supply. Read more >>

Gasoline Rising To 4 Month High

Hurricane Isaac and a deadly blast at Venezuela’s Amuay refinery pushed gasoline to an almost four- month high and threatened to revive a debate about energy costs in the run-up to the presidential election in November.

Futures jumped yesterday in New York as Isaac forced closures of Gulf Coast refineries and reduced rates at others. That market is also reeling from an Aug. 25 explosion in Venezuela that killed at least 48 people and closed the country’s largest fuel-making plant. Futures are up 23 percent since their 2012 settlement low of $2.5501 a gallon on June 21.

Prices at the pump will be the highest ever for the U.S. Labor Day holiday, AAA said yesterday. The surge reignites an issue that has pitted President Barack Obama, who has called for the elimination of billions of dollars of subsidies enjoyed by the oil and gas industry, against the presumptive Republican nominee Mitt Romney. It also spurs speculation that Obama will release supplies from the Strategic Petroleum Reserve to ease prices for consumers. Read more >>