Factors conspire against drivers

Published 9:00 pm Friday, April 21, 2006

Some of the factors cited for the price increases for gasoline and its raw ingredient, crude oil, which closed trading on the New York Commodity Market on Friday just above $75 a barrel, a new record:

Rising demand: Analysts and commodity traders are worried about supplies keeping up with demand. Even with higher prices, U.S. and worldwide demand for oil and gas has been rising this year. As we approach the summer driving season, domestic stocks of gasoline have dropped to their lowest level since last fall.

Geopolitical turmoil: Iraq’s oil production is still at a trickle in the wake of the war there. U.S. tensions with Iran are rising, and rebel attacks have cut Nigeria’s oil exports by more than 20 percent. The latest rebel attack came on Friday. That doesn’t even figure in the strained U.S. relationship with Venezuela, another major oil producer.

Shifts in refinery production: At this time of year, refineries in some parts of the nation switch from producing winter-grade gasoline to cleaner-burning summer blends, which can cause disruptions. This year, they also are shifting from fuel with the polluting additive MTBE to fuel with cleaner ethanol.