Energy Sector Roundup: Oil hits record near $124 a barrel

Following is a summary of top stories in the energy sector Wednesday afternoon:

Oil again surges to new record

Oil prices hit a new record near $124 a barrel after the U.S. Energy Department said diesel and heating oil supplies unexpectedly fell last week.

Light, sweet crude for June delivery hit a new high of $123.80 on the New York Mercantile Exchange before retreating slightly to settle up $1.69 at a record $123.53 a barrel.

The Energy Department report also showed crude inventories rose much more than analysts predicted, while gasoline supplies increased, when analysts forecast a decline.

Retail gas prices rose for the first time since last week, edging up 0.8 cent to $3.618, according to a survey of stations by AAA and the Oil Price Information Service.

On the Nymex, June heating oil futures rose 9.38 cents to settle at $3.4473 a gallon after earlier rising to a new trading record of $3.4535, while June gasoline futures rose 1.27 cents to settle at $3.1182 a gallon after earlier rising to a new high of $3.1323. Natural gas for June delivery rose 17.7 cents to settle at $11.327 per 1,000 cubic feet.

Ford significantly boosts 6-speed transmission output

Ford Motor Co. said it will double the number of six-speed automatic transmissions produced by the end of the year, and expects to install the more fuel-efficient gearboxes in 98 percent of its North American vehicles by 2012.

The transmissions, which will debut in 2009-model Ford Escape and Mercury Mariner crossover vehicles, offer 4 percent to 6 percent better fuel economy than four- and five-speed automatics, Ford said.

Ford is aiming to cut vehicle greenhouse gas emissions 30 percent by 2020. Last year, the U.S. Congress mandated that all new cars and trucks must get a fleet average of 35 mile per gallon by 2020, up 40 percent from existing standards.

General Motors Corp. last month introduced a six-speed automatic transmission for its 2008 Chevy Malibu.

Multistate partnership to study carbon capture

Then U.S. Energy Department awarded $61.1 million to a multistate environmental partnership to research new ways to capture and store carbon dioxide and other greenhouse gases.

The Midwest Regional Carbon Sequestration Partnership project, working with Columbus, Ohio-based Battelle Memorial Laboratories, will test ways to store the gases in underground geological formations, and in land occupied by crops and forests. It is one of seven such projects in the U.S.

The partnership includes the states of Ohio, Indiana, Kentucky, West Virginia, Maryland, Pennsylvania, New York and Michigan.

Singapore Airlines joins rivals in boosting fuel surcharge

Singapore Airlines became the latest carrier to raise its fuel surcharge as the aviation industry struggles to cope with the rapidly rising cost of jet fuel. The Asian airline last raised its surcharge in March.

On long-haul flights between Asia and the U.S. and Canada, the fee will rise to $150 from $130 per flight. The levy will increase to $35 from $30 per flight in Southwest Asia, and to $95 from $80 on other flights.

Airlines around the world have hiked ticket prices, tacked on fuel surcharges or begun charging extra for one-time gratuities such as added legroom and a second checked bag in an effort to recoup fuel costs. Those expenses, now the biggest single cost for many carriers, have soared along with the price of oil.

France's Total posts 1Q gain of 18 percent

French oil company Total SA, the world's fourth-largest oil and gas company, said its first-quarter profit rose 18 percent thanks to higher commodity prices.

Excluding an after-tax inventory effect, adjusted net income increased 9 percent to 3.25 billion euros ($4.87 billion). The company's exploration and production business accounted for 85 percent of overall operating profit.

The results were only slightly above market expectations, said Jason Kenney, an oil analyst at ING in Edinburgh, Scotland. "It's a safe set of results but it's lacking the 'Wow!' factor that they market was looking for," he said.

Total's biggest competitors, including Chevron Corp., Exxon Mobil Corp., ConocoPhillips in the U.S., and BP PLC and Royal Dutch Shell PLC in Europe, have all posted sharply higher quarterly profits in recent weeks.

Singing the gas pump blues

A man in Valparaiso, Ind., took out his frustration over soaring energy costs by climbing atop a convenience store and belting out a song about the high price of gasoline.

Armed with a guitar and megaphone, Jay Weinberg, 29, performed his song, "Price Gouge'n," while overlooking pumps selling fuel for $3.78 a gallon. Supporters below chimed in: "I can't afford it. I'm banging on my dashboard. I can't believe they think I'm a fool."

Weinberg was arrested shortly afterward on charges of trespassing and disorderly conduct.

--Compiled by AP Business Writer Adam Schreck