U.S. Gasoline Rate Holds Steady As Oil Rises, Ike Strengthens

September 12, 2008 12:56 p.m. EST

New York, NY (AHN) - Gasoline rates climbed on Friday as Hurricane Ike gathered strength as it bore on Texas' coast, raising concern on the damage of oil and natural gas facilities in the region.

Gasoline prices had spiked mainly in the impact area as reports said wholesale gasoline prices topped $5 a gallon on Thursday on the Texas Gulf Coast.

On Friday, according to AAA Texas, the state average price of a gallon of gasoline held steady at $3.54, which was in fact down by 14 cents compared to the national average of $3.68 a gallon.

Hurricane Ike, which has already ravaged Caribbean with more than 80 percent of homes on Grand Turk and South Caicos Islands destroyed, is projected to head towards the Texas Gulf Coast around 1 a.m. Saturday.

The National Weather Service has projected Ike to strengthen from its current Category 2 level in to a Category 3 storm before landfall early Saturday.

At least eleven refineries in Texas Gulf Coast, which makes around 42 percent of the U.S. gasoline supply, were shut down until the storm passes.

Crude for October delivery gained by 60 cents to $101.54 a barrel in electronic trading on Globex, while the contract for October delivery traded at 33 cents higher to $101.20 on the New York Mercantile Exchange.