U.S. demand for gasoline reaches record for April

Rising gasoline prices have not discouraged Americans from driving, as weekly U.S. motor fuel demand reached a record high for April, the government said Wednesday.

The strength in demand, and declining production because of refinery outages, helped pull gasoline inventories down 5.48 million barrels to 199.7 million barrels last week -- the lowest since October 2005, the Energy Department report showed.

It was the biggest one-week decline since Aug. 22, 2003.

Gasoline consumption last week averaged 9.472 million barrels a day, a record for April, the report said.

“The latest weekly data showed demand continuing to grow at a strong clip....It takes a large increase in prices to significantly affect demand,” the Energy Department’s analytical arm said in its market review.

The latest surge in pump prices apparently hasn’t been enough to make a difference: The national price for regular unleaded gasoline rose 9.5 cents over the last week to $2.80 a gallon. It was the 10th straight weekly increase.

Prices are higher in some regions, including California.

The Energy Department said data suggested national average pump prices would have to be “in the neighborhood” of $3 a gallon before Americans would change their driving activities.

News of the drawdown in supplies sent gasoline futures prices higher in New York. Futures for May delivery rose 3.57 cents, or 1.7%, to settle at $2.159 a gallon, the highest closing price since Aug. 9. The fuel is made to be blended with ethanol before delivery to filling stations.

The government Tuesday said motorists should expect higher prices by summer, but that gasoline still should cost slightly less, on average, than it did last summer.

Near-term crude oil futures in New York edged up 12 cents to $62.01 a barrel.