Kitsap gas prices keep on rising

Today’s average price for a gallon of unleaded in Kitsap is $3.32, up a penny from Tuesday and up 51 cents from this time last year. Oil prices continue to rise, signaling no downward turn in the near future, at least. Here’s some explanation of that:

Associated Press
Oil prices moved up toward $85 a barrel Wednesday after a report showed U.S. crude supplies unexpectedly fell last week, suggesting demand may be improving.
By early afternoon in Europe, benchmark crude for March delivery was up 27 cents at $84.59 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 49 cents to settle at $84.32 on Tuesday.
In London, Brent crude for April delivery gained 62 cents to $102.26 a barrel on the ICE Futures exchange.
Analysts said the wide gap between the Nymex and Brent contracts, over $14 for contracts expiring in April, would likely hold for now.
“The shrinking supply of North Sea oil should continue to support the price of Brent, especially as demand for crude oil from this region is robust,” said a report from Commerzbank in Frankfurt. “This suggests that Brent will retain a price premium over WTI, even if the price gap does narrow in the coming months, as we expect.”
The American Petroleum Institute said late Tuesday that crude inventories fell 354,000 barrels last week while analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., had forecast an increase of 2.8 million barrels. Crude supplies at the key Cushing, Oklahoma terminal rose 250,000 barrels.
Inventories of gasoline rose 1.2 million barrels and distillates dropped 1.2 million barrels, the API said.
The Energy Department’s Energy Information Administration reports its weekly supply data — the market benchmark — later Wednesday.
“Recent (API) surveys have been exactly in line with the energy department’s when it comes to Cushing, which bodes well for prices today,” energy consultant The Schork Report said. “If the energy department corroborates, the (oil price) bottom may be behind us for now.”
In other Nymex trading in March contracts, heating oil rose 1.4 cents to $2.743 a gallon and gasoline gained 1.4 cents to $2.5028 a gallon. Natural gas futures were down 1.9 cents at $3.957 per 1,000 cubic feet.

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