Big Draw in Gas Supply Sends Energy Prices Jumping

Evidence that refiners severely curtailed their production of gasoline over the past week sent energy prices jumping across the board.

The Energy Information Administration reported Thursday that gasoline in storage fell by more than 5 million barrels at a time when most energy experts expected supplies to grow yet again. Oil prices hit a new high for the year.

Consumers may see a bump upward in pump prices but only a slight one, experts believe, because gas supplies greater than what they usually are at this time of the year and demand is still low due to the recession.

The average national price for retail gasoline has been drifting lower for two months. That price ticked up slightly overnight, according to auto club AAA, Wright Express and Oil Price Information Service.

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Pump prices rose less than a penny to $2.487 per gallon, which is 7.6 cents less than last month at this time and well below the summer peak of $2.69 reached in June. Last year at this time, a gallon of gas cost $3.12.

"This is probably enough to drift up a little bit but it should not be the first step on the march back to $3," oil analyst Tom Kloza said.

Refiners have been idling facilities because of a lack of demand at the same time that others have been shut down for routine maintenance.

Besides the report on gasoline, the dollar hit a 52-week low on Thursday, which may have also contributed to the run-up in energy prices.

"The ignition switch for a rally got hit twice today," Kloza said.

Crude and gasoline prices have remained relatively stable for months with no clear signs of an economic rebound. But prices began to rise late last week when Alcoa, which kicks off the U.S. earning season, reported that it had returned to profitability after three straight quarterly losses.

One day after jumping above $75 per barrel for the first time this year, benchmark crude prices rose another $2.40 to settle at $77.58 on Thursday. At one point, prices were 3 cents shy of $78 per barrel.