Gas prices increase almost a nickel in NEO

CLEVELAND — This week, the average price for a gallon of regular self-serve gasoline in northeast Ohio increased 4.5 cents and is currently $2.738 at the pump.

The national average retail price for a gallon of self-serve regular is $2.830 or 3.5 cents higher than the average price one week ago today.

According to AAA’s Fuel Gauge, oil prices surged to new highs for the year to open the week, largely riding a renewed wave of optimism on the economy which has fed investor hopes for improving demand for oil and gasoline. Oil futures ended Monday up about $1.74 to close at $86.61 per barrel.

The primary reason for the spike in investor optimism seems to be the March employment data released on Friday of last week. According the Department of Labor, employers added about 162,000 jobs in March, a strong showing after losing 14,000 jobs in February.

Given economic optimism is largely behind the recent surge in oil prices, it is worth re-examining how investor speculation on the economy leads