Crude oil re-surged yesterday on concerns that U.S. Refineries will be hard-pressed to meet the nation’s gasoline needs.

May crude oil futures rose $0.28 to $54.27 a barrel.

Yesterday’s US government report showed a healthy rise in crude stockpiles taking them to the highest level since July 2002, but gasoline and other fuels supplies shrank.

According to the U.S. Energy Information Administration, gasoline inventories lost 2.9 million barrels and amounted to 214.4 million barrels last week. This is the fourth consecutive drop on the eve of the summer driving season. Gas prices in 2005 are 2% higher than a year ago, and the 6.3% surplus in gasoline stockpiles over last year is not enough to soothe worries.

``We know there’s plenty of crude around, but there’s just not enough refining capacity to process it,’’ said Rob Laughlin, a broker at Man Financial in London. ``Prices of oil-derived products will remain strong.’’ US refineries are performing maintenance operations that are taking its toll on the gasoline production.

"The U.S. gasoline supply/demand balance is tightening at lightning speed," SG Commodities Research said in report. "By early April, days forward supply cover is likely to be no higher than that of a year ago."

The Organization of the Petroleum Exporting Countries pumps at the official quota of 27.5 million bpd set at the Iran meeting on March 16. The cartel’s President Sheikh Ahmad al-Fahd al-Sabah said that the group will not raise output ceiling till its next June meeting.