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Job news may be root of spike in gas

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By RUSSELL RAY

rray@tampatrib.com

Published: May 12, 2009

TAMPA - Higher crude oil prices are raising the cost of gasoline in Florida and elsewhere.

In the past week, the average price for a gallon of regular unleaded in Florida has spiked 15 cents, to $2.24, according to AAA's Daily Fuel Gauge Report.

In the Tampa Bay area, motorists are paying $2.20 for a gallon of regular gas, up from $2.06 a month ago, the daily survey showed. A year ago, the same grade of fuel was averaging $3.66 a gallon in the Bay area.

Benchmark crude for June delivery fell 13 cents to settle at $58.50 a barrel Monday. On Friday, the contract rose $1.92 to settle at $58.63 a barrel, the highest level this year, and about 80 percent above the $32.40 per barrel reached Dec. 19.

The price surge defies the fundamentals of supply and demand, said AAA spokesman Gregg Laskoski, who pointed to a surplus of oil and ample supplies of gasoline.

"But some analysts believe that news last week from the U.S. Department of Labor reporting a decline in unemployment benefit claims points to emerging recovery and growing demand for fuel in the near term," Laskoski said.

Information from The Associated Press was used in this report. Reporter Russell Ray can be reached at (813) 259-7870.

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