NEW YORK (CNN/Money) - Oil prices jumped to the highest in more than 13 years Wednesday as a drop in already low gasoline inventories sharpened the threat of a supply crunch that could hurt economic growth.

Light crude for April delivery rose 70 cents to settle at $38.81 a barrel on the New York Mercantile Exchange, its highest close since October 1990.

The May contract ended 85 cents higher at $37.62. In London, May Brent crude rose 85 cents to $33.53 a barrel.

Prices jumped after the federal Energy Information Administration's latest snapshot on the world's biggest oil market showed a further 800,000 barrels decline in gasoline stocks to 199.6 million barrels.

U.S. gasoline supplies are running 5 percent below the five-year average, sparking concerns refineries will struggle to build supplies in time for the summer driving season.

"What we're seeing now is that some funds had moved to the side making sure there wasn't a bearish surprise and now they are rotating back into the long side," Jim Ritterbusch, president of Ritterbusch and Associates, told Reuters.

U.S. light crude prices have averaged almost $35 a barrel so far in 2004, well above 2003's average price of $31, which was the highest in more than two decades.

Plans by OPEC to cut official production quotas by 4 percent in April and surging Chinese demand have combined to push prices to levels which consuming countries fear could hurt economic growth.

OPEC ministers agreed last month to eliminate 1.5 million barrels a day of supply above existing quotas and cut official production limits in April by 1 million barrels to 23.5 million barrels daily.

YOUR E-MAIL ALERTS Follow the news that matters to you. Create your own alert to be notified on topics you're interested in. Or, visit Popular Alerts for suggestions. Manage alerts | What is this?

While most OPEC ministers have said they intended to implement the April cuts, there have been few signs of cutbacks in March.

Tanker tracking consultant Petrologistics has told clients it expected the 10 OPEC members with quotas to produce 25.63 million barrels a day in March, down just 150,000 barrels from February.  

-- Reuters contributed to the story