Gas prices jump in California, nationwide

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With rising oil prices providing a brisk tailwind, gasoline prices jumped during the last week, rising nearly 7 cents a gallon in California and more than 16 cents across the U.S., the Energy Department said today.

The average price per gallon of self-serve regular gas in California rose 6.9 cents to $2.424, according to the government’s weekly survey of fuel stations. Nationally, the average increased 16.2 cents to $2.240, led by Midwestern states, which saw a 20.6-cent bump.

The previous week, gas prices rose 1.5 cents in California and the national average increased by 2.9 cents.

But gasoline is still much cheaper than it was last year. At this time in 2008, a gallon of regular gasoline cost an average of $3.919 in California and $3.722 nationally.

Analysts have been betting that crude oil soon will hit $60 a barrel, based on last week’s 10% price surge on the New York Mercantile Exchange. On Friday, crude oil reached its highest point this year: $58.63 a barrel.

Today, crude oil for June delivery slipped 13 cents to $58.50 a barrel.

With a more-than-plentiful supply of crude oil priced into the market, recent increases in gas prices and crude shouldn’t revive fears of another march toward $3 a gallon, said Tom Kloza, chief oil analyst with Oil Price Information Service, based in Wall, N.J.

‘I would say the chance of $3-a-gallon gas this year is similar to tests coming out here in the next few days that Manny was completely clean and was misdiagnosed a prescription by his doctor,’ Kloza said. ‘I just don’t see that happening. I’m pretty convinced that this is a year of much more temperate fuel prices given the economy we’re in, with about 15 or 20 cents maximum, and I would think less, close to the top.’

Kloza said he expects fuel prices to continue to rise through Memorial Day, but then to stabilize as people drive less and demand grows sluggish.

-- Nathan Olivarez-Giles