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Oil prices rise, but gas prices are lower

WASHINGTON — Oil prices topped the $100 a barrel mark on Wednesday and that has some consumers worried the increase will drive up costs at the pump.

But contrary to conventional wisdom, CNN’s Allison Kosik says consumers will be relieved to hear that may not be the case.

“We may not see those prices at the pump go up too much because of a few reasons here,” she says.

“Winter-grade gasoline — the kind of formula that’s used over the winter — is a lot cheaper. And also, people typically drive less in the winter, so there could be less demand for gas as well, and that would keep the prices lower than they usually would.”

Experts say one reason oil has jumped 26 percent in the last two months is because the U.S. economy has continued to show signs of strength, which means the demand for fuel may grow.

The other reason is not so promising. Concerns are rising over disruptions to critical world oil supplies in areas of unrest in the Middle East and Africa.

But while the higher cost of a barrel may not affect consumers at the pump, it could mean higher airline ticket prices.

Meanwhile, gas prices are lower throughout the D.C. area this week.

WTOP’s Price at the Pump survey shows the average price of a gallon of regular is $3.44, down two cents from last week.

Mid grade dropped a penny to $3.62, and premium dropped two cents to $3.74. But diesel fuel is up three cents, sitting at $4.01 per gallon.

The average for regular fuel this week is cheapest in the Maryland area, at $3.38 a gallon, compared to the Virginia average at $3.39 a gallon, and the District average at $3.55 gallon.

The Associated Press contributed to this report.WTOP’s Del Walters contributed to this report.Follow WTOP on Twitter.

(Copyright 2011 by WTOP. All Rights Reserved.)

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