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Crude Oil Price Sends US Gasoline to $2.66 A Gallon

The average price of a gallon of gasoline in the United States rose nearly 17 cents over the past two weeks as crude oil prices climbed to about $72 a barrel, according to an industry analyst.

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The national average for self-serve, regular unleaded gas was $2.66 a gallon on June 12, up 16.68 cents, according to the nationwide Lundberg survey of gas stations. The increase is overwhelmingly due to the rise in crude oil prices, said survey editor Trilby Lundberg.

The rise in crude prices, however, is not due to demand, which was down, and the higher prices at the pump comes "at time when the number of employed motorists continues to shrink," Lundberg said in an interview.

"Our gas demand lives on the work commute rather than recreational driving," she added.

Lundberg speculated that massive government spending has led to fears of inflation and uncertainty about the dollar, driving investors to crude oil and sending up the price.

She noted that the futures market believes crude prices are about where they will be for the rest of year. "If true, gas prices would rise only a few more pennies, if at all, from here," Lundberg said.

The average price on the day of the survey was still $1.34 a gallon below what it was a year ago, when the price averaged $3.99 per gallon nationwide.

At $2.99 a gallon, San Francisco had the highest average price for self-serve, regular unleaded gas, while the lowest price was found in Tucson, Arizona, at $2.41 per gallon. Story Body Copy goes here.

The average price of a gallon f gasoline in the United States rose nearly 17 cents over the ast two weeks as crude oil prices climbed to about $72 a barrel, according to an industry analyst.

The national average for self-serve, regular unleaded gas was $2.66 a gallon on June 12, up 16.68 cents, according to the nationwide Lundberg survey of gas stations.

The increase is overwhelmingly due to the rise in crude oil prices, said survey editor Trilby Lundberg.

The rise in crude prices, however, is not due to demand, which was down, and the higher prices at the pump comes "at time when the number of employed motorists continues to shrink," Lundberg said in an interview.

"Our gas demand lives on the work commute rather than recreational driving," she added.

Lundberg speculated that massive government spending has led to fears of inflation and uncertainty about the dollar, driving investors to crude oil and sending up the price.

She noted that the futures market believes crude prices are about where they will be for the rest of year.

"If true, gas prices would rise only a few more pennies, if at all, from here," Lundberg said. The average price on the day of the survey was still $1.34 a gallon below what it was a year ago, when the price averaged $3.99 per gallon nationwide.

At $2.99 a gallon, San Francisco had the highest average price for self-serve, regular unleaded gas, while the lowest price was found in Tucson, Arizona, at $2.41 per gallon.