Crude oil prices soar, Nevada gas prices jump

Thursday, Feb. 13, 2003 | 11:12 a.m.

SUN STAFF AND WIRE REPORTS

Crude oil futures rose to a 29-month high today after U.K. Prime Minister Tony Blair said the possible discovery of Iraqi missiles that violate United Nations arms restrictions may accelerate U.S. and U.K. plans for military action against the oil producer.

The two allies have said they will attack Iraq unless the government of Saddam Hussein cooperates with UN demands that it rid itself of weapons of mass destruction. Oil prices have jumped 28 percent over the past two months on concern that action might disrupt exports from the Persian Gulf.

"The anxiety continues to build about a possible Iraqi war," said Tom Bentz, an oil broker at BNP Paribas Commodity Futures Inc. in New York. "We are building up to a war when crude oil inventory levels in the U.S. are at 28-year lows and OPEC is already producing close to capacity."

Crude oil for March delivery was up 48 cents, or 1.3 percent, at $36.25 a barrel as of 10:08 a.m. on the New York Mercantile Exchange. Oil reached $36.35 in earlier trading, the highest price since Sept. 20, 2000.

In Nevada, the Middle East tensions, an oil strike in Venezuela and a seasonal decline in refinery production in the Western United States have sent gasoline prices soaring to February record levels.

At an average of $1.69 a gallon, Nevadans are paying some of the highest prices in the country, 7 cents above the national average. Driving still is a relative bargain compared to California's average of $1.80 a gallon.

"Nationally, this is the highest price ever recorded by AAA during February," said AAA of Nevada spokesman Sean Comey. "This is usually a time when prices are lower than during other months of the year."

The statewide average is up 21 cents in the past month -- a 14 percent increase.

The ongoing strike in Venezuela has reduced exports there and speculation over war with Iraq in the oil-rich Middle East has pushed the price of crude above $30 a barrel.

Domestically, refineries are undergoing routine maintenance as they prepare for next month's switchover to a summer fuel blend.

Reno tops the cost with an average of $1.72 for a gallon of regular unleaded, up 19 cents. Elko is the bargain at $1.54, a 12-cent increase.

Las Vegas is up 22 cents at $1.65. Carson City averages $1.67, up 19 cents, and Sparks is up 14 cents at $1.66.

"AAA urges consumers to shop aggressively for the best price on gasoline," Comey said. "Look for ways to decrease your fuel consumption and keep your vehicle properly maintained to help cut down on your gas bill."