Metro Detroit gas prices inching back toward $4

Metro Detroit gas prices inching back toward $4 Refinery troubles, fears of OPEC production cuts blamed Jaclyn Trop/ The Detroit News

After weeks of falling prices at the pump, $4-a-gallon gas returned to Metro Detroit this week.

By late afternoon Tuesday, prices at some gas stations across Metro Detroit ranged from $3.99 to $4.05 a gallon, according to the Michigan GasBuddy.com website, which publishes gas station prices from volunteer spotters. Gas prices in the Metro region and statewide surged 20 cents during the past week, settling Tuesday at an average of $3.77 a gallon in Metro Detroit, AAA Michigan said.

The recent rise is being fueled by refinery problems in Ohio and Indiana as well as concern that the Organization of Petroleum Exporting Countries will cut oil production, said Patrick DeHaan, the Grand Rapids-based senior petroleum analyst with GasBuddy.com. Oil accounts for as much as 80 percent of the price of gas.

Fears of international supply shortages raised the price of oil as high as $97.48 a barrel Tuesday on the New York Mercantile Exchange and could soon push pump prices throughout Michigan past the critical $4-a-gallon threshold, DeHaan said.

"Market sentiment has changed," he said. "Now, a lot of people believe prices are going up."

Speedway, a subsidiary of Findlay, Ohio-based Marathon Petroleum, led the price increase in the region, selling gas at $3.95 a gallon at several of its Metro Detroit stations.

"Prices go up and down quite a bit," said spokesman Shane Pochard.

"The biggest factor is the price of oil itself. The other reason is we're in the middle of the summertime driving season, when demand goes up."

Motorist Alexo Thuwaini spent $84 Tuesday afternoon at the Speedway station on 15 Mile and Ryan roads in Sterling Heights to fill the tank of his pickup. Thuwaini, the owner of Sterling Heights-based Champion Towing, said he fills his tank twice a week, usually at $100 a pop.

"I think it's ridiculous," he said. If prices keep going up, "then I'll lose everything. I can't afford it."

Oil and gas prices nationwide slumped briefly late last month after the decisions of the U.S. government and International Energy Agency to release about 90 million barrels of oil combined from their reserves, but the relief for Great Lakes motorists was short-lived.

Worldwide demand for oil will drive prices higher, according to a Goldman Sachs analyst report released Friday.

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Metro Detroit gas prices inching back toward $4

A 150000-barrel-a-day refinery in Lima, Ohio, owned by Husky Energy Inc. has been shut to repair a leak in a furnace, the company said in a press release. And BP's Whiting, Ind., refinery is reportedly having an emissions issue.



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installation of a furnace or water heater. The housing project was undergoing renovations, he said. "It appears the contractor installing siding disconnected all our gas meters from the wall outside and they were all hanging loose," he said.



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Thus, as temps moderated in March, production came back on-stream and gas-furnace demand eased. Most importantly, natural gas producers have since upped their short position on the Nymex from 25303 contracts as of February 22nd to a record 74544




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