Utah gas hits all-time high

Nope, you weren't imagining things. Gas prices indeed reached an all-time high on Wednesday, according to AAA Utah.

The statewide average price for a gallon of regular unleaded gasoline hit $2.33, AAA reported. Premium-grade gas hit an average per-gallon price of $2.57.

"Statewide average gas prices are up 53 cents since the start of the year," Rolayne Fairclough, AAA Utah spokeswoman, said in a prepared statement. "That means the cost of filling up an average sedan has gone up more than $8 — more if you drive a minivan or an SUV."

But Utahns aren't alone. Across the nation, AAA reported record prices. The national average price for regular unleaded gasoline climbed to an all-time high of $2.38 per gallon, up 57 cents from mid-January. The highest gas prices were reported in California, at $2.68 per gallon. In all, AAA said 31 states reported higher gas prices than were found in Utah.

Several factors played a role in this week's price hike, AAA said.

"The price of crude oil has nearly tripled in the last three years. Energy traders seem to be concerned about possible supply disruptions due to Iran's policy on the development of nuclear weapons and terrorist threats in Saudi Arabia," the organization stated. "Retail prices are also being propelled higher by reports of refinery problems in the United States. Collectively, these disruptions may be affecting as much as three percent of domestic gasoline production."

AAA warned that average wholesale gasoline prices are also rising, and that prices at the pump may continue to rise in the coming days.

Oil prices zoomed higher Wednesday, touching a new high of $65 a barrel, with buyers focused on refinery snags, shrinking U.S. inventories of gasoline and motorists' growing thirst for fuel despite record-high costs.

The latest rally — crude futures have risen 14 percent in three weeks — highlights just how nervous the market has become to output threats. It doesn't seem to matter, analysts said, that the country has enough fuel in inventory to offset routine supply disruptions.

The heightened sensitivity comes amid strong demand in the United States and China, the world's top consuming nations, where high prices have tempered rising fuel consumption only slightly.