While prices rose, oil production increased in January
pacific.bizjournals.com Howard Dicus Pacific Business News
It isn't going to please those Hawaii residents who are now paying $2 a gallon for gasoline, or shippers bracing for next month's increase in the Matson fuel surcharge, but global oil production actually rose last month.
The Monday edition of the Middle East Economic Survey says OPEC oil production rose 2.2 percent from December to January, to 25.7 million barrels per day.
This means crude oil prices rose on world markets because of war fears despite the fact that supplies were actually improving. The benchmark crude in New York has risen to the neighborhood of $38 a barrel, the highest level in years.
Venezuela got more production back on-line as it recovered from a general strike, and output was boosted by Kuwait, Saudi Arabia and the United Arab Emirates. But more than half of the January increase in production came from Iraq, the Survey reported.
This means Iraq has materially profited from the prolonged crisis over its alleged possession of weapons of mass destruction.
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The American Automobile Association, which surveys retail gasoline prices daily in three Hawaii cities, on Monday reported an average $1.81 a gallon for self-serve regular unleaded gas in Honolulu, up 9 cents from a month ago.
In Wailuku the average price was almost $2.11 a gallon, up 13 cents in one month.
In Hilo the price was just under $1.90 a gallon, up 2 cents in the past month. Prices tend to be closer to $2 a gallon or more on the Kona side of the Big Island and on other islands.
Matson Navigation Co. said on Friday that next month it will raise its fuel surcharge from 6.5 percent to 7.5 percent, and CSX Lines said it is reviewing its own costs. Meanwhile, with jet fuel also rising, American Airlines says its cargo division is raising its own fuel charge.