Gas prices high? Oil price survey points to more increases.

 David Kotok, chairman and chief investment officer, of Cumberland Advisors said an additional penny a gallon on gasoline translates roughly to a $1.4 billion decrease in U.S. annual spending power.

 "A big uncertainty premium is building" in the price of crude oil because of the geo-political uncertainty, Kotok wrote in a weekly commentary. "We remain overweight energy."

The average U.S. price of gasoline jumped 18 cents a gallon in the past two weeks to $3.69 on Feb. 24, according to the nationwide Lundberg Survey, Reuters reported.

 But supplies of fuel remained plentiful in most of the country, the survey found.

 At $4.24 a gallon, San Diego had the highest average price for regular unleaded gasoline on Feb. 24, while the lowest price was $3.07 a gallon in Denver.

 Some believe gasoline prices may average $4.50 a gallon or as high as $5.00, damaging demand ahead of the peak summer driving season.

 Blue Phoenix's Licata said record gasoline prices in February are "troubling and could be the precursor for $4.50 plus gasoline this summer." That, he explained, could create another 'Prius Effect' and "delay economic growth, which unlike in 2008 supports more hybrid car/PHEV (plug-in hybrid electric vehicle) demand. However with no real widespread substitute of oil on a mainstream level, I believe near-term the real long idea is to be bullish for WTI versus Brent."

 Shelley Goldberg, Director, Global Resources & Commodities Strategy at Roubini Global Economics said "demand destruction is already kicking in as the U.S. is psychologically reluctant to fill up the tank with gasoline nearing $4 a gallon at the pump while the U.K., from a currency standpoint, faces ever rising petrol prices."

 Meanwhile, policymakers are issuing warnings about the rise in global oil prices. In its final communique after the two-day meeting of finance ministers and central bankers, the G20 noted risks to growth from rising oil prices, which jumped to a nearly 10-month high above $125 a barrel on Friday. The G20 welcomed pledges by oil producers to ensure adequate supply.

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