Oil rises on gasoline inventory fears

NEW YORK, May 15 (UPI) -- New York crude oil prices closed at more than $63 a barrel Tuesday on fears about tight U.S. gasoline inventories during the summer driving season.

The fears followed a report from the Organization of the Petroleum Exporting Countries saying inventories were more than enough to meet summer-driving fuel demand but gasoline stocks were "low for this time of year."

Light, sweet crude for June delivery rose 71 cents, or 1.14 percent, to close at $63.17 on the New York Mercantile Exchange. It had traded as high as $63.30.

June natural gas lost 9 cents, or 1.11 percent, to $7.86 per 1,000 cubic feet. June heating oil added 2.34 cents, or 1.25 percent, to $1.8902 a gallon.

Reformulated gasoline blendstock for oxygen blending edged up 0.04 cent, or 0.02 percent, to $2.3016 a gallon.

AAA said Tuesday the average U.S. retail regular unleaded gasoline price was $3.087 a gallon, up 1.4 cents from Monday's $3.073 a gallon.

AAA Public Affairs Director Geoff Sundstrom told a U.S. Senate committee Tuesday the last time gasoline prices topped $3 a gallon was Aug. 7, 2006, after Israel invaded Lebanon.