By BRAD FOSS, AP Business Writer
WASHINGTON - Despite near record-high gasoline prices, U.S. motorists continue to increase consumption and, with supplies tight, that is helping to keep fuel costs propped up.
The Energy Department reported Monday that nationwide retail gasoline prices averaged $1.72 per gallon last week. Meanwhile, the price of oil surged to $37.44 per barrel on futures markets, the highest level in more than a year, in part because of the rising cost of motor fuel.
"Gasoline demand has been pretty spectacular of late," said Tom Kloza, director of Oil Price Information Service, a Lakewood, N.J., publisher of industry data.
The most recent statistics from the Department of Energy (news - web sites) show that gasoline demand has been roughly 3.7 percent higher than last year over the past four weeks. At the same time, nationwide supplies of gasoline are 1.2 percent below year ago levels at 220.4 million barrels, and 5 percent below the 5-year average.
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