Refineries that make gasoline and other fuels swiftly cut back on production last week, the government reported Thursday, sending energy prices jumping across the board. Energy markets had largely brushed off a winter weather forecast this week for major winter storms in the East and icy, cold conditions even between Atlanta and Dallas.
The Energy Information Administration, however, reported Thursday that gasoline in storage fell by more than 5 million barrels at a time when most energy experts expected supplies to grow yet again. Refiners have been idling facilities because of a lack of demand at the same time that others have been shut down for routine maintenance. Earlier Thursday, the dollar hit a 52 week low and the surprise report on gasoline may have led some people to believe supplies are growing tight, said oil analyst Tom Kloza said.
"The ignition switch for a rally got hit twice today," Kloza said. For consumers, that may mean a slight drift upward in pump prices but not much, experts believe.
Crude and gasoline prices have remained relatively stable for months with no clear signs of an economic rebound. Prices began to rise late last week when Alcoa, which kicks off the U.S. earning season, reported that it had returned to profitability after three straight quarterly losses.....read the entire article
