U.S. gas prices rise in last two weeks - survey

www.forbes.com Reuters, 03.09.03, 5:22 PM ET NEW YORK (Reuters) - U.S. average retail gasoline prices rose over the last two weeks, as crude prices climbed to 12-year highs on fears that war in Iraq could upset Middle East oil supplies, according to a nationwide survey released Sunday. The national average for self-serve regular unleaded gas rose 5.31 cents to $1.72 a gallon in the two weeks ended March 7, according to the Lundberg survey of 8,000 gas stations. Oil prices have already jumped 20 percent this year on fear that war in Iraq will hit exports from the Middle East, which pumps a third of the world's oil. Prices hit $39.99, the highest since the Gulf War on Feb 27. The United States and Britain have since set a March 17 ultimatum for Iraq to disarm or face war. Concern is growing that rising energy costs will further strain a weak economy. "When uncertainty about Middle East oil supply eases ... crude oil prices will fall," said Trilby Lundberg, editor of the survey. "If that fall is substantial and sustained, gasoline prices will come tumbling down as well," she said. An oil workers' strike in nearby Venezuela, and strong heating demand in a bitter northern winter has already drained U.S. fuel stocks. The government warned on Thursday that gasoline prices would hit record levels this summer. California consumers can expect to pay even more as the wholesale price for the state's new gasoline blend -- made with corn-based ethanol -- have shot up in recent trading on the spot market.