Crude oil hits $127.05
Gas averaging $3.79 per gallon
By Adam Schreck, Associated Press
Monday, May 19, 2008
More gas and oil records fell Monday as retail fuel prices struck new highs and crude settled above $127 for the first time, tightening the squeeze on drivers planning holiday trips.
Light, sweet crude for June delivery jumped 76 cents to settle at a record $127.05 a barrel on the New York Mercantile Exchange. Prices rallied at one point to within a nickel of Friday's record trading high near $128 a barrel.
Meanwhile, Americans are now paying an average of $3.79 for a gallon of regular gas, according to a survey by AAA and the Oil Price Information Service. Diesel, used to transport a wide range of goods, now costs $4.52 a gallon. Those prices, both records, are likely to keep rising, following crude's upward track.
Colorado's average of $3.716 a gallon Monday was a nickel shy of the record $3.721 set Saturday. But the state average for diesel hit another record high at $4.415 a gallon.
"We're looking at $4 a gallon (for regular nationwide) once we get past Memorial Day and into June, given the oil prices we're seeing today," said Geoff Sundstrom, fuel price analyst at AAA.
Drivers in some parts of the U.S. are already paying much more than the average. Pump prices in parts of California have been stuck above $4 a gallon for weeks now, though the statewide average is down to $3.96. Prices in Alaska and Connecticut are averaging just above $4 a gallon.
Those soaring prices - which compare with a national average of about $3.23 a year ago - are putting a strain on family finances and prompting some motorists to look for alternatives.
A report released Sunday showed retail prices topped an average $4 a gallon for the first time in two metropolitan areas: Chicago and New York's Long Island.
Oil prices shot higher Monday on a report that the Organization of Petroleum Exporting Countries would not increase production before its next meeting Sept. 9.
Staff writer Gargi Chakrabarty contributed to this report.
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