Gas supplies shrink, prices may rise

As the Labor Day holiday weekend approaches, U.S. gasolinesupplies are shrinking and refineries are reporting snags, aharbinger of higher prices at a time when fuel costs are alreadyclimbing in parts of the country. However, the price spike may beblunted after the Environmental Protection Agency temporarily relaxedstandards on the gasoline produced and sold by Citgo Petroleum Corp.in the Midwest in an attempt to alleviate a recent price spike in theregion. The American Petroleum Institute reported late Tuesday thatU.S. gasoline supplies shrank by 6.7 million barrels in the past weekto 196.2 million barrels, or 3 million barrels below year ago levels.Analysts said the shortfall …