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Average Gas Price Declines For First Time In A Year.... By Six Tenths Of A Cent

Tyler Durden's picture




 

And so we see why the proverbial 15 minute inflation reduction, even achieved though such brute force methods as relentless margin hikes everywhere except in the ES and 100x forward P/E stocks, is nothing but hot air. After dropping by over 10% in a few days, crude is now trading at a level that corresponded to gasoline in the low $3.00 range. Instead, as AAA reports, average gas prices did decline.... by $0.006. Apparently in his extended Princetonian studies, Printocchio never got to the class which says that prices are sticky on the way up, and refuse to plunge with the same enthusiasm, especially when involving margin starved companies which are more than happy not to undercut each other on overhead prices for a long, long time.

And while crude is already on the way up, and will likely regain its recent highs within a week, average gas prices continues to be just 15 cents away from the all time highs hit in 2008. Surely, this "massive" differential is enough to fill consumers with a warm, fuzzy glow.

And lastly, and most importantly, about 15 states now have an average regular price of over $4.00. Now where is Laszlo's ruler...

 

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Mon, 05/09/2011 - 11:25 | 1255579 firstdivision
firstdivision's picture

Boost in consumer spending all around.  That should be good for an entire 1% on GDP.  Time for Goldman, JPM, et. al, to send out their revisions boosting predictions.

Mon, 05/09/2011 - 11:23 | 1255587 Cognitive Dissonance
Cognitive Dissonance's picture

Time to load up on gasoline. How many 5 gallon cans can I fit under my queen size bed?

Physical is the only way to die. :>)

Mon, 05/09/2011 - 12:32 | 1255895 stickyfingers
stickyfingers's picture

Get a king size water bed and fill it up - just don't smoke in bed.

Mon, 05/09/2011 - 12:43 | 1255929 Cognitive Dissonance
Cognitive Dissonance's picture

LOL

And don't forget the STA-BIL.

Mon, 05/09/2011 - 11:27 | 1255591 NOTW777
NOTW777's picture

laughable. destruction of the middle class continues.

Mon, 05/09/2011 - 13:49 | 1256129 Saxxon
Saxxon's picture

Indeed, NOTW777.

This, this is the slow-motion trainwreck happening across the nation as we read.  You can almost hear the rivets popping out.  There is a massive hollowing going on beneath Main Street which will end up effectively like that freakish sinkhole in Guatemala (?) last year.

And this is why the current Administration is occupying itself orchestrating circuses and gladiatorial conquests for the entertainment of the unwashed.

Mon, 05/09/2011 - 11:27 | 1255593 Re-Discovery
Re-Discovery's picture

Hooray!!!  Inflation's dead!!!

Mon, 05/09/2011 - 11:25 | 1255595 jtmo3
jtmo3's picture

Ya, well take a look at wholesale gas today. Up about .18 a gallon now. So much for a decline. Lasted a long time?

Mon, 05/09/2011 - 11:28 | 1255597 cognus
cognus's picture

was that the extent of the Fed's "Power to pop commodity bubble" ?

http://blogs.forbes.com/greatspeculations/2011/05/08/fed-has-power-to-po...

 

Mon, 05/09/2011 - 11:31 | 1255599 jtmo3
jtmo3's picture

duplicate

Mon, 05/09/2011 - 11:29 | 1255610 Diamond Jim
Diamond Jim's picture

such a bargain, think they'll take some of my silver in exchange ???

Mon, 05/09/2011 - 11:52 | 1255726 mayhem_korner
mayhem_korner's picture

Here's a priceless piece of premature celebration...

http://www.examiner.com/political-buzz-in-national/gas-prices-appear-to-have-hit-peak-expected-to-start-falling-over-summer

Just a teaser from the article:

The $.0.006 difference may sound tiny, but when multiplied over a number of days it starts to add up to a more significant number. 

Mon, 05/09/2011 - 12:15 | 1255808 trav7777
trav7777's picture

so does the writer's IQ. 

Mon, 05/09/2011 - 12:44 | 1255933 Cognitive Dissonance
Cognitive Dissonance's picture

Clearly the writer is grasping at ounces.

Mon, 05/09/2011 - 11:59 | 1255761 digalert
digalert's picture

How I long for "gas wars". You've got to have a half century under your belt to remember.

Mon, 05/09/2011 - 12:28 | 1255888 Ruffcut
Ruffcut's picture

Gas wars, isn't that why we are in iraq and such?

Yep, got that half century stuff going on, but more like sagging over the belt.

Mon, 05/09/2011 - 15:30 | 1256551 Mec-sick-o
Mec-sick-o's picture

Time to bring out the Massturd Gas mask

Mon, 05/09/2011 - 16:28 | 1256761 Id fight Gandhi
Id fight Gandhi's picture

.... A long time ago in a United States far far away...

Mon, 05/09/2011 - 12:02 | 1255771 RobotTrader
RobotTrader's picture

Amazing how retail stocks are still unfazed.

People have money to burn, I guess....

LOL....

Mon, 05/09/2011 - 12:09 | 1255795 tmosley
tmosley's picture

Primary dealers, maybe.

Not that you would understand the mechanics of that.

Mon, 05/09/2011 - 12:56 | 1255978 mayhem_korner
mayhem_korner's picture

"money to burn"....Freudian slip, Robo?

Mon, 05/09/2011 - 13:04 | 1255993 Hugh_Jorgan
Hugh_Jorgan's picture

Yeah, and with volume in the toilet like it's been for two years... Hmm, almost like there is manipulation going on, eh? Enjoy your crumbs, they may be your last meal.

Mon, 05/09/2011 - 12:20 | 1255827 firstdivision
firstdivision's picture

Look at the SPX go.  It's as if someone tied a bottle rocket to the markets balls and lit the fuse.  Once QE2 ends though, that rocket will pop and the nuts will fall.

Mon, 05/09/2011 - 13:05 | 1255999 Seasmoke
Seasmoke's picture

way to go obama !

Mon, 05/09/2011 - 13:10 | 1256021 slewie the pi-rat
slewie the pi-rat's picture

RBOB + 15 centz, leveling off.

one good map deserves another:  wind shift to SE over fuk_u:  Japan Wind Map

Mon, 05/09/2011 - 13:29 | 1256066 The Alarmist
The Alarmist's picture

Price of diesel dropped 16 cents per litre in my corner of europe over the weekend.

Mon, 05/09/2011 - 13:37 | 1256087 Kilgore Trout
Kilgore Trout's picture

Got gas this weekend for 3.989. Felt like I was cheating the system.

Mon, 05/09/2011 - 14:55 | 1256406 willien1derland
willien1derland's picture

And NO ONE dropped the 'Green Shootz, Bitchez' post - C'mon lads its 6/10's of 1 cent! Think of the increase in discretionary consumer spending...Calling James Altucher - Please pick up the White Courtesy Phone in the lobby for an important message - Dow to 20K - SARCASM off!

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