CRUDE AWAKENING EXPERTS SAY SURGING GAS PRICES MAY SOON ROLL UP TO $2 A GALLON.

Byline: Brent Hopkins Staff Writer

Gas prices climbed for a fifth consecutive week and could soon crack the $2-a-gallon mark, industry experts warned Friday.

The Automobile Club of Southern California reported Friday that a gallon of regular gasoline hit $1.834 in Los Angeles, pushed by tight supplies. With crude oil prices still around $33 per barrel and the switch to summer formulation gas looming, there's no relief in sight.

``We thought prices would drop in January,'' said auto club spokesman Jeff Spring. ``The closer we're getting to the summer switch, we're wondering if there will be a drop at all. Prices may just take off from here without any dip.''

The California Energy Commission reported that the state's refineries are producing 950,000 barrels a day, below the 1 million mark they hit when at full production. This hiccup in production led to a jump in the spot market, which in turn sent retail prices upward.

``Nobody likes them going up, that's for sure,'' said Ron Klabbatz, a Woodland Hills parts manager fueling up his Suzuki Verona sedan for $26.28 at a 76 station. ``It's more money out of your pockets and less to spend on your kids. $1.93 a gallon! Dang ... that's outrageous.''

That's nothing, says industry watcher Bob van der Valk, who sells fuel wholesale for Santa Fe Springs-based Cosby Oil. He sees price increases of a nickel a week and gas at $2 a gallon by March, which he blamed on insufficient production. Though Californians use 42 million gallons of gas each day, he noted that the state's refineries can only produce 40 million during the winter, requiring imports and further straining the supply chain.

``There's more cars, more SUVs and more Hummers out there than there is gasoline,'' van der Valk said. ``It's causing increased demand and current capacity can't keep up with it.'

The oil companies' trade group, the Western States Petroleum Association, did not return calls seeking comment, but invariably links the price of gas to supply, demand and competition. In this case, the constrained, expensive supply seems to be the culprit.

That didn't soothe the anger of drivers such as Bruce Wright, a Woodland Hills actor. As he paid $25.83 to gas up his Nissan pickup, he rolled his eyes, grousing about yet another price hike.

``Are they gonna tell us it's a refinery in Alaska or something again?'' he said. ``There's always an excuse, and there's always a profit in it for them. But you're stuck. There's nothing you can do. You've got to keep driving, and you always need gas.''

Brent Hopkins, [phone]

brent.hopkins(at)dailynews.com

CAPTION(S):

photo, 2 boxes

Photo:

(color) no caption (Gas nuzzle)

Box:

(1) GAS PRICES ON THE RISE

Source: Automobile Club of Southern California

(2) GAS GAUGE

SOURCE: American Automobile Association

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