Increased supplies and uncertain demand caused gasoline futures prices to fall sharply Thursday. "The refineries are continuing to increase production," said Andrew Lebow, an analyst in New York with Shearson Lehman Bros. "But I think they've overdone it." Some gasoline contracts were down the 2-cent limit for daily trading before the losers were trimmed.
Data released by the American Petroleum Institute on Wednesday shows a 2.8 million barrel buildup in gasoline supplies. Refineries processed 13.5 million barrels of crude oil during the week ended May 23, a level of production last seen in 1981.