NEW YORK (AP) - Pump prices are heading higher as Tropical Storm Isaac forces several major refineries along the Gulf Coast to halt production in preparation for high winds and heavy rains.
Fear of reduced gasoline supplies sent wholesale gasoline prices up 7.7 cents, or 2.4 percent, to $3.155 per gallon Monday. The average retail price for a gallon of gasoline in the U.S. rose to $3.75 on Monday, and it could pass $3.80 by Labor Day weekend, says Tom Kloza, chief oil analyst at the Oil Price Information Service.
Oil fell Monday because Gulf Coast refineries won't be using as much in the next few days and damage to key oil and gas operations in the Gulf of Mexico seemed less likely as the storm's winds aren't expected to be as strong as some had feared.