And It's Not Even Summer: Gas Jumps 19 Cents In Two Weeks, Less Than 10% Below All Time High

Tyler Durden's picture

According to the latest Lundberg survey the average price for a gallon of gasoline in the United States has moved closer to $4, jumping more than 19 cents since mid-March to a level less than 10 percent below its all-time high. And it's not even peak driving season, which typically sees a seasonal jump of at least 15-20% from early spring levels. Per Reuters: " The Lundberg Survey said the national average price of self-serve, regular unleaded gas was $3.765 on Friday, up from $3.573 on March 18, and up 91.3 cents from $2.852 a year ago. Prices in several western U.S. cities are already above $4 per gallon, led by San Francisco at $4.13. Chicago was close behind at $4.11 a gallon, the survey said." What is not surprising is that demand saturation is starting to set in, meaning refinery margins are now going through the window: " The national average would have been higher had refiners and retailers not resisted passing on rising crude oil prices as customers grow less willing to pay what it takes to fill their gas tanks, analyst Trilby Lundberg said in an interview. "Demand has been falling at these prices," she said."

From Reuters:

The record high average pump price is $4.112 set on July 11, 2008. Lundberg tracks roughly 2,500 gas stations.

Crude oil prices are higher amid unrest in Libya and elsewhere in the Middle East, as well as a weaker U.S. dollar, which on Friday fell to a 15-month low against the euro.

A falling dollar often lifts dollar-denominated commodities such as oil. This is because some investors use commodities as an inflation hedge, and consumers who use other currencies may view the commodities as cheap and buy more, driving up prices.

U.S. crude <CLc1> settled Friday at $112.79 per barrel, after earlier reaching its highest intraday price since September 2008. ICE Brent crude <LCOc1> settled at $126.65 per barrel, the highest settlement since July 2008.

Even if crude prices do not change, Lundberg said pump prices could rise another dime per gallon as earlier increases work their way into the retail market.

"One gets a little bit depressed talking about it, but we are getting closer" to a $4 per gallon average, though "there is no telling" when or whether it will occur, Lundberg said.

The average price for diesel fuel did top $4 per gallon for the first time since 2008, rising to $4.09 from $3.978 three weeks earlier, and $3.056 a year ago, according to the Lundberg survey, which is done in Camarillo, California.

The lowest average price for a gallon of unleaded gas in the 48 contiguous states was in Tucson, Arizona, at $3.41, Lundberg said. San Francisco had the highest price.

What is certain is that with a several day pass thru lag between crude and
gas prices, following WTI hitting $113 overnight, it is guaranteed that
this week we will see a $3.80+ handle in gas prices. How that will impact the economy is pretty much obvious to everyone except the 3-4 algos and few NYU POMO interns who are left trading the centrally planned capital markets.

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John Wilmot's picture

Stick a fork in suburbia, it's done.

As Gerald Celente has said, the end of cheap energy could result in a cultural renaissance: the collapse of the vulgar, mass, hyper-efficient (with cheap energy), global economy - to be replaced by local economies. Less emphasis on quantity, more on quality.

 

 

.....That's what might happen if the plan wasn't to herd us into massive cities, and rewild the rest of the country, and manage every aspect of our soon-to-be pathetic lives as serfs. : (

oh_bama's picture

Too negative!!

 

Energy and food and some other things have high volatility!! So they go UP and DOWN..

INFLATION EXPECTATIONS ARE STILL TOO LOW

QE3 IS A MUST!!

EscapeKey's picture

We're fighting deflation at present; there's definitely no inflation... the limited issues in commodity inflation are entirely outweighed by other factors... the commodity based inflation is temporary, and should present no problem with regards to the continuing recovery.

Compare these to Bernanke's lies with regards to the housing bubble, and you know where this is going.

topcallingtroll's picture

M

many of you are guilty of underestimating the intelligence and determination of the fed and bernanke. Tylers hubris on this issue of his vastly superior knowledge as opposed to ben bernanke is.also bery obvious. We shall see who is.correct.

To ne.contemptuous of your enemy's skill and intelligence has been the.downfall of many.

EscapeKey's picture

You seem to be under the mistaken belief that Bernanke is fighting us, the 1% of the population wide awake, and aware of what is going on.

He is not. He is fighting the 99% who could care less about anything but who gets into the Superbowl.

blindfaith's picture

yep, got that right.

 

Just wait until all the rest of the unemployment checks stop.  Take cover, is my suggestion for our great leaders including the great mr. ben.

All these people wanting to get out, now that spring is here, and having no money and high gas...and zero prospects.

Chump's picture

Yo, our "leaders" have the means to a.) get the fuck out of dodge if they need to and b.) blow the fucking shit out of any and all comers.  If we peons start to feel froggy then a drone or two will take the bounce right out.

"Take cover" is for us, the peons, as we tear each other apart when the checks stop coming and the grocery store shelves are empty.  Or were you thinking we'd all join up, train for a couple days on small unit tactics, and then march on Washington?  Nope, sorry, but just say "Zerohedge" and I'll have you a warm meal and a smoke.

r101958's picture

...and who wins American Idolatry.

aerojet's picture

I would point out that you can be "wide awake" but still not smart enough to understand economics.  I think Bernanke is actually right about commodities and it is you folks on here, the powerless, who are wrong.

Chump's picture

I would point out that you can "think Bernanke is actually right" but still not be smart enough to understand economics.  I think the obvious effects of printing trillions upon trillions of dollars are pretty awful and you're merely a blithering idiot.

John Wilmot's picture

Ben's right about commodities eh? How's that? The part about there being no signficant inflation or the part about the Fed not causing the nonexistent inflation with the debt monetization its not doing?

I'm sure Ben is more intelligent than most of us here. His intelligence is not in question, however, only his motives. Too many interpret statements like 'subprime is contained' or one of his other gems as signs of ignorance. They are not. He knew subprime wasn't contained. Just like he knows he's monetizing debt and causing inflation now. He lies to serve an agenda. It seems easier for most people to believe that the government is incompetent than that it has ulterior motives. That's not the more logical position, but it is the more comfortable one. ; )

 

 

hedgeless_horseman's picture

He lies to serve an agenda.

You mean that the Chairman of the Federal Reserve Board lies about his actions, big actions that enrich his cohorts while impoverishing millions?  Something like this?

“We’re not going to monetize the debt,” Mr. Bernanke declared flatly...

  

                                         -February 25, 2010

http://www.washingtontimes.com/news/2010/feb/25/bernanke-delivers-warning-on-us-debt/

MassDecep's picture

Everything going as planned. Eliminated the middle class. Hey watch more American Idol, and the Biggest Loser is .......you!

topcallingtroll's picture

The cure for high prices is high prices.

Party on!

The market will sort it all out if we let it.

quasimodo's picture

Great idea!

If you live in the fucking city and have access to a bus.

Long-John-Silver's picture

98% of America has no public transportation option. Only in large cities such as New York will you catch a bus.

baconator3000's picture

well true.im doing my part in demand destruction. suppose there are other alternatives. 98%? Sounds like bullshit... most midsize cities have bus service. Hell i used to live in Racine Wisconsin, they had 24 hour bus service

earnyermoney's picture

public transportation sux. Ride a bicycle. Think of the savings on health care if everyone had to ride a bicycle to and from work.

cbxer55's picture

HA! Think we all want to go back to smelling like oxen again? Just you try riding a bike 10 miles each way to a place you work, that has no shower facilities, on a 95 degree + day with 40 or 50 % or higher humidity. By the time you get there, you'll look like a sewer rat, and smell worse.

I have two motorcycles, either of which gets 45+ mpg. One gets closer to 60. Now that the weather is actually nice enough, I'll be parking the Lightning, and riding again. The Lightning is a premium only vehicle which gets 10 mpg on a good day. Since my wife and I do not have any credit cards, and only have a house and one vehicle payment, I anticipate no problems keeping the Lightning filled up, even at $5.00 + gas.

But there will be a lot of other things we'll not be buying because of these prices.

Mad Max's picture

I also call bullshit on the 98% claim.  Hell, roughly 3% of the US population lives in New York City!

I live in a rural area outside a small town, not even a city, in farm country.  I have access to public transportation here.  I'm in a state that does a poor job of public transportation, and still at least 30% of the state's population lives near a bus route.  Do some research before you claim that no public transportation is available.

blunderdog's picture

98% by territory, more like 40% by population.

But lots of town/city folks would never dream of using the crappy mass transit that is available in their area.

That'll change.

baconator3000's picture

exactly. There is a stigma created over the years that you NEED A CAR OMG...which is complete bullshit and draws parallel to NEEDiNG AN IPHONE OMG. People are lazy. Dont wanna walk. Owning a Car is not neccessary in any city over 50,000 people with bus service I promise you. Just do the research, find the route and transfers. Oh boohoo you have to get up a half an hour early before work or have to actually strike up a conversation with another human being.

 

 

 

MachoMan's picture

I agree with the iPhone assessment, not so much with cars...  for whatever reason, a large part of the american identity is tied to our personal vehicles...  it allows us to pretend to be unique snowflakes...  aside from being incredibly convenient.  The problem, of course, is that the bill eventually comes due.

PS, if people wanted to strike up conversations with others, they'd have done it by now... 

blunderdog's picture

There's really no problem or conflict here.  Convenience costs.

A 10lb bag of potatoes is what...$3?  And makes a LOT of mashed potatoes.  A 6oz box of instant mashed potatoes is what, $4?  And makes a LITTLE BIT of mashed potatoes.

So pay to play.  If you want the convenience of rolling around everywhere in a car, what's the problem with it costing a few hundred bucks a month?

Shit, gives folks an excuse to turn off their fuckin' cable teevee.

Ahmeexnal's picture

Everyone knows it has to do with more than just an "identity".

Cars make up for what is lacking under peoples pants/bras.

 

 

MassDecep's picture

Hey escapekey "We're fighting deflation at present; there's definitely no inflation..."

One question.

1. What country are you living in?

In the US, my Grocery bill is up about 11-16% from approx. 6 months ago.

 

topcallingtroll's picture

I think escape key was.ridiculing that belief not supporting it.

trav7777's picture

I preach to the shorties about the hidden inflation in food and how the mfrs mess with the container sizes and sure enough, this week, Odwalla reduced their tasty fruit beverage containers from 15oz to 12 while maintaining the same apparent tag price.

20% of the content, poof.  Things like this demonstrate what inflation is like nothing else can.

blindfaith's picture

Try instant mashed potatoes:

November 25th, 2010...9 ounces

December 25th, 2010...7.2 ounces

April 4th, 2011, ..........5.5 ounces

Same Box, same price... Thanks Betty for the magic.

aerojet's picture

And there's probably a message on the box proclaiming "New, Lower Fat!"

blunderdog's picture

An old 50s Mad Magazine eyeball kick--the menu at a fast-food stand:

Burger     -- $0.10
  w/bun    -- $0.15
  w/meat  -- $1.25

 

squexx's picture

I'm paying nearly $8/gallon here in South Korea. Quit bitching!

Long-John-Silver's picture

Place a map of South Korea over a map of the USA......

MonsterBox's picture

i'd personally love to see these SUVs & 13 mpg Pickups pay $8 a gallon.  maybe there'd be a little less "haulin' ass" up & down the road.

Just what is your big fuck'n hurry, asshole?

cossack55's picture

Heard the local coin store received some ASEs. Can't be late.

gkm's picture

LOL, have to agree.  I`m not a slow driver by any means nor do I drive a slow car - so when I constantly get blown away at lights and even just cruising by soccer mom vans and asshat pickups, I know the price is still too low.  

Hope today brings a decent pull back in USO to reload what I sold friday.

Chump's picture

That's funny cause I have the opposite problem.  Giant ass trucks poking along while clueless hippies with a death wish pretend they're saving gas as they weave their Prius in and out of traffic at 85 MPH.

blindfaith's picture

Dear squexx, you say "

I'm paying nearly $8/gallon here in South Korea. Quit bitching!"

 

How sweet.  Perhaps you would like us poor American slobs and whiners to stop paying our military to protect your pathetic ass every day.

Maybe we Americans should wake up and stop buying your cars, and other assorted crap since YOUR country STILL does NOT allow USA Imports after 50 years of supporting you ( which I think is enough...GO LEARN TO STAND ON YOUR OWN DAMN TWO FEET AND STOP DEPENDING ON THE USA TO SUPPORT YOU!!!!).

See what we get.... you show no gratitide for all the tax dollars you have gotten from us. You get our hids, we get you fucking attitude.

FreedomGuy's picture

Well, if you're an American soldier protecting S. Korea then it won't last forever and you will appreciate the price of our gas when you get back. If you are a S. Korean then you need to ask why it is taxed so highly. It might not be a bad deal if your income/personal taxes are lower and your highway support is fully priced into your fuel. Mini Cooper makes a great little car that'll get you over 40mpg! Scooters are cool, too!

James's picture

squexx says -

I'm paying nearly $8/gallon here in South Korea. Quit bitching!

 

 

Curious - What is your overall level of taxation?

Weimar Ben Bernanke's picture

Wait till the House of Mud is overthrowed. Gas will skyrocket and will lead to an oil shock at home. This will be the ultimate black swan. The question is when.

duo's picture

The normalcy bias of the sheeple has them believeing that gas will drop back down to $2, usually after the US starts a war somewhere.  People will complain for a few months, but when September rolls around and gas is still $4-5, people will re-think the 12 MPG SUV they bought with cash-4-clunkers.

Long motor scooters (70 mpg and up).

Long-John-Silver's picture

A friend of mine ordered a 30' container full of 125cc street legal motorcycles from Taiwan and sold out in 2 weeks @ 150% profit. He has ordered 2 more 40' containers plus parts and tools for servicing them.

Chump's picture

ROFL.  Great idea but just wait until the local "authorities" get wind of it!

johnQpublic's picture

got backpacks for the dogs...for going for grocerys....saddles next

writingsonthewall's picture

Complete the following:

Boom - Bust - Boom - Bust - Boom.....

Repeat after me.

"There is no consequence to QE, There is no consequence to QE, There is no consequence to QE, There is no consequence to QE, There is no consequence to QE"

Right - on with blaming someone else - who shall we try this time?

My all time favourite is "global economic winds" - in an effort to please all those 'god botherers' so they can convince themselves this is punishment for sin - and not a crisis of their own making through greed (which I guess is about the same thing really)

Crikey did I just prove God's existence?