Retail gasoline prices up in US despite weak demand

Retail prices for gasoline were up Thursday to levels not seen in more than a year, while the Energy Information Administration reported that US natural gas stockpiles were lower last week but still remained above normal levels for this time of year.

AAA said that pump prices for gasoline in the United States rose overnight to just under $2.71 per gallon on average nationally, with some stations in coastal areas already charging $3 per gallon.

Prices are rising despite demand that remains weak as refineries slow down or shut down, with US refineries operating at just 79.9 percent of capacity last week according to the EIA.

Demand has not been helped by winter weather that has been keeping drivers in some parts of the United States off the roads entirely.

The cold weather was also responsible for the draw on natural gas stockpiles, which were down by 153 billion cubic feet last week to 3.12 trillion cubic feet, which is still 11.3 percent above the five-year average and around 10 percent above last year’s levels.

February contracts for West Texas Intermediate crude were down 50 cents to $82.68 per barrel in late morning trade on the New York Mercantile Exchange, while Brent crude was last reported down 26 cents to $81.63 per barrel on the ICE Futures Europe exchange in London.

Nymex February gasoline futures were down a cent to $2.13 per gallon in morning trade while February heating oil also dropped a cent, to $2.13 per gallon, while March natural gas was 3 cents lower to $5.92 per million British thermal units.