US Gas Prices Rising Despite Crude Oil Slump

Data from the US Energy Information Administration released yesterday says that the average retail price of gasoline rose to a three month high of $1.96/gallon yesterday.

The news comes despite crude oil slumping below $35/barrel, and is because US refineries are cutting back on production due to falling demand, according to the EIA.

Pump prices for gasoline in the US are now at their highest since November 17th, the last time prices were above $2/gallon.

Energy Dept. data due tomorrow is expected to show gasoline supplies fell 300,000 barrels in the week ended Feb. 13.

Crude oil inventories however are expected 3.2 million barrels higher.