Gas prices jump in Motor City

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DETROIT, July 6 (UPI) -- Drivers in Motor City are watching the return of $4 per gallon gasoline, a Web site that monitors U.S. prices said.

Prices jumped 20 cents in the past week after falling for weeks, The Detroit News reported.

While prices averaged $3.77 in the Metro region, the price range included a high of $4.05 per gallon, the newspaper said.

The national average price of gasoline reached $3.574 per gallon on June 27 after falling for seven consecutive weeks, the Energy Information Administration said in last week's report. AAA on Wednesday has the national average at $3.569 per gallon with prices across the country ranging from $3.306 to $4.092.

By state, the highest averages are in California, Washington, Oregon, New York, Connecticut, Michigan, and Illinois. The lowest averages are found in Texas, Arizona, Louisiana, Alabama, Arkansas, Mississippi, Missouri, Virginia, Tennessee, and South Carolina.

The recent surge in prices is based on fear that oil exporting countries will cut back on production and on refinery problems in the Midwest, the News said.

"Market sentiment has changed. Now, a lot of people believe prices are going up," said Patrick DeHaan, senior petroleum analyst at GasBuddy.com.

"The biggest factor is the price of oil itself," said Shane Pochard, a spokesman for Speedway, a gas station chain.

"The other reason is we're in the middle of the summertime driving season, when demand goes up," he said.