Gas prices rose at start of summer travel season

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Gas prices shot up during the start of the summer travel season, rising as high as an average of $3.90 a gallon in Porter County as drivers hit the road for Memorial Day weekend. 

The average price of gas in Indiana was $3.58 a gallon Tuesday, up from $3.50 a gallon a week ago and down from $4.59 a year old ago, according to AAA. The average price in neighboring Illinois was $3.93 a gallon Tuesday, up from $3.92 a gallon a week ago and down from $4.99 a gallon a year ago.

National gas prices were $3.57 a gallon Tuesday, up from $3.55 a gallon a week ago and down from $4.61 a gallon a year ago, according to AAA.

As of Tuesday, gas cost an average of $3.84 a gallon in Lake County, $3.90 per gallon in Porter County and $3.78 per gallon in LaPorte County, according to GasBuddy.com. The average price of gas averaged about $3.58 a gallon in Newton, Jasper, Starke and Pulaski counties.

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As drivers hit the road for Memorial Day weekend, gas rose 15 cents a gallon week-over-week in Lake County, 20 cents a gallon week-over-week in Porter and Newton counties and 7 cents a gallon week-over-week in LaPorte County.

Gas prices in the greater Chicago metropolitan area averaged $4.22 per gallon, including an average of $4.46 within city limits, according to AAA.

Retail gasoline demand fell 1.3% last week, according to GasBuddy.com.

Gasoline inventories increased by 2.1 million barrels and 8% as compared to the five-year average, according to the Energy Information Administration. Oil production rose by 100,000 barrels per day to 12.3 million barrels.

West Texas Intermediate crude oil fell 75 cents to $71.92 per barrel Monday, according to GasBuddy.com. Brent crude oil fell by $1.09 to $75.98 per barrel.

Gasoline production rose to 10.3 million barrels a day though refinery utilization at refineries like those in Whiting and Joliet fell 0.3 percentage points to 91.7%.

“Gasoline prices have drifted higher in the last week due to some relatively minor refinery kinks and low gasoline supply, but it may not be a trend that lasts too much longer,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “As we unofficially start the summer driving season, the national average is likely to spend much of the summer in the range of $3.35-$3.85 per gallon, though it could go higher if unexpected refinery outages flare up, or we see a major hurricane or economic development. While gasoline prices have inched up slightly, we’re still faring much better than we did last year, when the national average started to soar after Memorial Day on its way up to the $5 per gallon mark. In addition, gas prices may temporarily rally if a debt ceiling deal passes through Congress in the weeks ahead, based on the optimism that such a deal could avert a major recession, keeping oil demand stronger this summer.”

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