Heaven Forbid Gas Goes to $2.40/gallon!

I was just complaining to my mom tonight how our Gas prices have jumped overnight. I saw gas for $2.79 last night. The cheapest I could find today was $2.99 and that irritated me to no end. If I had known a jump was coming I would have filled up yesterday. Instead I lost the wait & see game this time. I couldn’t figure out what the deal was since Hurricane Rita happened almost a week ago. Turns out I wasn’t the only one wondering. There was an article in tonight’s Star-Telegram about this very thing:

Tarrant gas prices soar overnight

By DAN PILLER

Star-Telegram Staff Writer

Cooler temperatures and higher gasoline prices greeted Tarrant County motorists Thursday morning, with some stations showing prices as high as $3.32 for unleaded self-serve regular gasoline.

Station managers reported they have been told by distributors that supplies are tight. Wayne Meadlin, owner of a Texaco on Camp Bowie Boulevard, said “I’m number 17 in line. I have to call every 30 minutes to see how the price has changed.”

The Chevron branded stations operated by Tetco of San Antonio appeared to be the most aggressive in raising prices. Chevrons along Highway 360 in Arlington at the Mayfield and Arkansas lane interchanges showed prices of $3.32 per gallon.

Another Chevron at Davis and Starnes Road in North Richland Hills showed a price of $3.29 per gallon.

Not all prices had shot up by mid-morning. The Exxon Mobil at Camp Bowie and Bryant-Irvin Road west of downtown still posted a price of $2.79 for self-serve unleaded. Elsewhere, many stations labored to keep their prices at $2.99 per gallon. A week ago, as the energy market settled after Hurricane Katrina, Tarrant County’s average price had dipped below $2.70 per gallon.

“We’ll probably have to raise our price this afternoon,” said Jay Patel, co-owner of the On The Way convenience store on Davis Boulevard in North Richland Hills, which was selling unleaded at $2.84 about 9 a.m. Thursday.

Analysts have warned of possibly tight supplies of oil and gasoline after Hurricane Rita became the second major storm to tear through the Gulf of Mexico production and refinery infrastructure, which produces and refines about 30 percent of the U.S. domestic crude oil output.

As of Thursday morning, 10 major oil refineries along the Texas-Louisiana Gulf coast remained closed for repairs after the storm. Those that had reopend, mostly in the Houston area, were at reduced output as they gradually came back to full speed.

In morning trading on the New York Mercantile Exchange, gasoline futures stood at $2.19 per gallon, down 15 cents from their close Wednesday. Crude oil futures were at $65.65 per barrel, down 70 cents from yesterday’s close.

Most ominously for winter, natural gas continued its climb, crossing $14 per thousand cubic feet for the first time. Natural gas has traded more than 60 percent higher than before Hurricane Katrina and the federal and state governments have warned of major heating costs increases and possible shortages of natural gas going into the winter heating season that begins Nov. 1.