Sliding U.S. gasoline stocks spook energy market

NEW YORK (Reuters) – A steep slide in gasoline stockpiles in the United States sparked concern of a potential supply crunch when drivers hit the roads this summer, pushing up oil prices on Wednesday.

The climb in prices came against the backdrop of simmering tensions between the United States and oil exporter
Iran, and production cuts by
OPEC.


Gasoline futures on the New York Mercantile Exchange soared 2.2 percent to an eight-month high of $2.17 a gallon Wednesday after a government report showed inventories in the world’s top consumer fell for the ninth consecutive week.

Refinery outages, strong demand, and falling import levels have slashed U.S. gasoline supplies more than 12 percent since early February, at a time of year the oil industry typically boosts storage for the summer driving season.

“With dynamics like these, $3 retail gasoline looks to be right around the corner,” said Jason Schenker, economist at Wachovia Bank in North Carolina.

Reuters