MAHONING VALLEY Gas prices rise as oil production slows down

Prices increased about 25 cents a gallon at some area stations.
THE VINDICATOR
YOUNGSTOWN -- Gasoline prices are increasing because of a recent increase in crude oil prices, an gasoline company official says.
Prices spiked about 25 cents a gallon Monday at some gas stations in the Mahoning Valley. Regular unleaded gas moved up over $1.50 a gallon at these stations, while some were still charging below $1.30.
The AAA Ohio Motorists Association said the average price in the Youngstown-Warren area Monday was $1.37, which was 5 cents higher than Sunday. The local price is the second-lowest in the state, topping Akron's average by a penny.
The reasons
Linda Casey, spokeswoman for Marathon Ashland Petroleum in Findlay, said crude oil prices are increasing because of actions by OPEC and a delayed increase in oil production by Iraq.
When the war with Iraq concluded, oil prices fell from $40 a barrel to $23 a barrel because traders thought oil from Iraq would come into the market in great quantities, she said.
That hasn't happened, so oil prices are increasing. Iraq is shipping 1 million barrels a day, compared with 2.6 million barrels in 2001.
Crude oil was trading Monday at about $27 a barrel.
Casey said another factor pushing up oil prices has been a recent decision by the Organization of Petroleum Exporting Countries to cut production in order to boost prices.
Casey said Marathon doesn't predict what gas prices might do in the future because there are too many variables. The company sells Marathon and Ashland gas and owns Speedway SuperAmerica.