Crude Oil Tops $53; Gasoline Futures Jump

Crude oil rose above $53 a barrel Wednesday for the first time in four months and gasoline futures surged to an all-time high on concern that oil production and refining capacity are not keeping up with rising demand.

The jump in oil and gas prices came despite swelling supplies of both in the United States, pointing up a widening disconnection between inventory levels and prices, analysts said.

Crude oil for April delivery gained $1.37, or 2.7%, to $53.05 a barrel on the New York Mercantile Exchange, the highest close since Oct. 26. Prices are up 45% from a year ago.

Gasoline for April delivery rose 8.11 cents, or 5.8%, to $1.484 a gallon in New York, the highest close since gasoline futures began trading in 1984. Prices are 30% higher than a year ago.

Rising futures prices have been finding their way to the streets. The average U.S. retail price for regular gasoline rose 2.3 cents to $1.928 a gallon, up 12% from $1.717 a gallon a year ago, the Energy Department reported Monday.

U.S. crude oil and gasoline supplies have amassed a roughly 9% surplus over last year, with gasoline stocks at their highest levels since 1999, according to Energy Department data released Wednesday.

However, the same report showed that refineries used 89.3% of their capacity in the week ended Friday, the lowest level since October when companies were performing repairs after a hurricane hit the Gulf of Mexico. Hedge-fund managers and other large speculators purchased contracts after the report was released, bidding prices higher.

But some analysts said Wednesday’s price surge also illustrated that the market, once dominated by supply fluctuations in the United States, had shifted its attention to a more subtle, yet haunting theme -- growing global oil demand that is threatening to outpace supply.