Gas-price squeeze to fuel refiner profits - Oil & Energy - MSNBC.com

Gas-price squeeze to fuel refiner profits - Oil & Energy - MSNBC.com: "Gas-price squeeze seen pumping refiner profits
Threat of summer supply bottlenecks sends gas prices higher
By John W. Schoen
Senior Producer
MSNBC
Updated: 7:41 p.m. ET March 17, 2006


With the summer driving season still months away, pump prices have already begun rising as a combination of factors threaten to squeeze supplies. And with pump prices expected to continue rising as summer approaches, drivers� pain may soon become refiners� gain, according to analysts who follow the industry.
The national average cost of a gallon of regular gasoline hit $2.42 Friday, up nearly 16 cents a gallon in the past month, according to the latest figures from AAA. That�s up nearly 38 cents from this time last year. Diesel prices averaged nearly $2.64 a gallon nationwide, up 7 cents in the last months and nearly 40 cents from a year ago.
Pump prices continue to vary widely from one part of ht country to another. The lowest average price regular unleaded was in Newark, N.J., at $2.15 a gallon, according to the most recent Lundberg Survey, an energy consulting firm. But prices at some stations have once again topped $3.00 a gallon.
The jump in prices comes as demand for gas has been creeping upward.
�Gasoline consumption over the past 4 weeks has been 2.4 percent above prior-year levels, on average, suggesting momentum continues to build ahead of the summer driving seasons,� said Jacques Rousseau, an analyst at Friedman Billings and Ramsey.
Meanwhile, bottlenecks may also be looming for U.S. gasoline supplies, which could push prices even higher from current levels.
Though most refiners damaged by hurricane Katrina and Rita have come back on line, much of the industry was forced to postp"