Oil, gas prices hit two-year high - KWWL - Eastern Iowa Breaking News, Weather, Closings

Oil, gas prices hit two-year high

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NEW YORK (AP) -- Prices at the gas pump have reached a 28-month high, even though oil and gas supplies continue to grow and demand for gas is weak.

The national average for regular gasoline is now $3.13 a gallon, according to AAA, Wright Express and the Oil Price Information Service.  That's about $1.20 higher than two years ago.

Just eight states have average prices less than $3 a gallon. The cheapest is $2.94 a gallon in Missouri. Hawaii has the highest average of $3.74 a gallon.  Tom Kloza, OPIS chief oil analyst, predicts gas prices will range from $3.50 to $3.75 a gallon this spring and then drift lower, to between $3 and $3.40 a gallon.

Average gas prices have climbed steadily from about $2.80 a gallon in November.

Crude oil prices have also been climbing.  Oil was trading at $84.99 per barrel Wednesday on the New York Mercantile Exchange.

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