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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: BigBull who wrote (73166)	9/12/2000 3:05:38 PM
From: Jon Cave	Respond to of 95453

Calif. drivers pay record prices to fill tanks Calif. drivers pay record prices to fill tanks By Timna Tanners LOS ANGELES, Sept 12 (Reuters) - California drivers last week paid more than ever before to fill their gasoline tanks, as retail prices climbed 5 cents to an average $1.85 a gallon in the world's third largest gasoline consuming region. California prices were nearly the nation's steepest, trailing Hawaii by a dime. The latest California average price of $1.85 a gallon is the highest since $1.79 a gallon in mid-March, according to a California Energy Commission report on Tuesday. Drivers in San Francisco this week paid about $2.02 a gallon for regular unleaded, and in some smaller central California towns prices topped $2.09 a gallon. Los Angeles prices were about $1.72 a gallon. Even after the Labor Day holiday ended, marking the end of summer driving season, California fuel prices failed to ease as they have in the past. "Historically we see after Labor Day the prices adjust seasonally downward. We have not seen that this period because of the record price of crude oil," California state American Automobile Association (AAA) spokesman Justin O'Brien said. Analysts say oil prices at decade highs this month -- more than $35 a barrel -- have pressured gasoline prices. In addition, fuel prices in California tend to be more sensitive than in the rest of the country because the state uses the world's cleanest-burning blend, called CARB, which is made by a limited number of refiners. The Rocky Mountains also geographically isolate the state from alternative gasoline suppliers. Gasoline prices in the Golden State compare to the average U.S. gasoline price of $1.57, according to AAA. The spike in gasoline prices follows public furor in the past year that sparked protests and a federal investigation into California gasoline pricing policies. Oil refiners have attributed price spikes to additional costs associated with producing the CARB blend as well as higher oil prices. AAA's O'Brien said prices could ease in coming weeks due to the weekend decision by oil producer cartel OPEC to increase world output by 800,000 barrels per day (bpd). But he warned that steep diesel prices could be a looming problem for California truckers and for the economy. "Diesel is a cousin of heating oil. If there is a cold snap back East, refiners will switch to producing heating oil and diesel prices will rise higher," O'Brien said. California diesel prices are already the nation's highest at an average $2.03 a gallon statewide and as high as $2.16 in San Jose. Many consumer goods are transmitted by diesel truck and steeper fuel prices could consequently cripple some areas of the economy.