in between movements of the oil market and the equities markets,» said Victor Shum, an energy analyst with Purvin & Gertz in Singapore. Energy investors also continued to digest Wednesday's Energy Department report showing that crude oil and gasoline inventories jumped more than expected last week, analysts said. Gasoline inventories are at their highest levels in nearly two years, analysts said. Demand for gasoline fell last week, and many observers expect further demand deterioration as the economy slows. That could threaten Energy Department predictions that gas prices will set new records near $3.50 a gallon this spring. «I just don't see that,» Cordier said. At the pump, gas prices inched 0.3 cent higher to a national average of $2.986 a gallon Thursday, according to AAA and the Oil Price Information Service. Retail prices, which typically lag the futures market, have risen slightly over the past two days after falling below $3 a gallon last week. But if oil continues falling, gas prices will retreat further from the $3 level, analysts said. Oil traders are also awaiting Friday's OPEC meeting at which Organization of Petroleum Exporting Countries ministers are expected to hold production steady. Other energy futures also fell Thursday. February gasoline futures dropped 6.9 cents to $2.265 a gallon, while February heating oil fell 6.43 cents to $2.485 a gallon. Both contracts expire at the close of trading. March natural gas futures fell 2.4 cents to $8.021 per 1,000 cubic feet. The Energy Department said natural gas inventories fell last week by 274 billion cubic feet, on the higher end of analyst estimates. In London, Brent crude futures lost $2 to $90.53 a barrel on the ICE Futures exchange.
