NEW YORK — Just in time for the start of the summer driving season: oil near $130 a barrel and gas up nearly 20 percent over last year. It may be worth packing extra cash along with the picnic supplies this Memorial Day weekend.
Crude prices spiked to another trading high Tuesday as supply concerns mounted and traders poured in for a last- minute buying binge. At filling stations across the country, the national average price for a gallon of regular gasoline approached $4, touching $3.80 for the first time.
The June contract for light, sweet crude traded as high as $129.60 on the New York Mercantile Exchange before settling at $129.07, up $2.02 from Monday’s record high. The imminent expiration of that contract, which ended with the close of Tuesday’s trading, created additional volatility in the market.
“I keep making projections, and they keep turning out to be too low, especially in the crude market,” said Darin Newsom, senior analyst at market-analysis provider DTN. “We’re already pushing up against $130. If we clear that, there’s no reason to believe crude oil can’t get to $140.”
Oil’s march to new highs coincided with the Labor Department’s report of an unexpectedly sharp rise in wholesale inflation last month. The combination raised fears that inflation will slice into Americans’ discretionary spending, and that sent stocks falling sharply on Wall Street.
Retail fuel prices also continued to shatter records, pressuring drivers looking forward to road trips this weekend. The national average price for a gallon of regular gasoline is $3.80, according to AAA and the Oil Price Information Service.
Oil futures are selling for about twice what they were a year ago.
