Gas prices back to $3 a gallon, following oil's rally

NEW YORK — Gas prices rose back to $3 a gallon at the pump Friday, following rising futures prices on concerns about tight inventories and potential supply disruptions. But oil prices fell Friday, reversing earlier gains after weak figures on new home sales ignited fresh concerns about the economy. Analysts think futures investors are anticipating big gains by buying now, driving futures — and thus pump prices — higher. Kloza thinks gas prices will rise because refiners will again struggle to increase supplies in advance of peak summer driving season, raising concerns that there won’t be enough to meet demand. Gasoline futures have been pushed to new records in recent days, in part by the Goldman Sachs Commodity Index’s plan to boost its gasoline futures holdings next month. Meanwhile, several observers have raised concerns about Thursday’s Energy Information Administration oil inventory report that showed inventories fell sharply last week. read more

[Tags]prices, futures, fell, oil, 3, concerns, gas prices[/Tags]

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