Gas prices rise as cost for oil spikes - wave3.com-Louisville News, Weather & Sports

Gas prices rise as cost for oil spikes

LOUISVILLE, KY (AP) - The economy is still sluggish, but gasoline prices are rising as the holidays near.

Triple-A and other sources say a gallon of unleaded regular is up about a nickel in the past week, averaging $2.85. That's only seven cents shy of the high hit in May.

The reason for the rise is not demand. Investors are betting that oil prices will increase as the Federal Reserve tries to stimulate the economy by buying $600 billion in bonds. During trading today, oil was surpassing the year's high price reached in May.

Motorists in California, Washington, Oregon, New York and Illinois are among drivers paying the highest prices, between $2.95 to $3.51 a gallon. The lowest prices, between $2.65 and $2.70 a gallon, are found mostly in the Midwest, Texas and the South.

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