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Brent Vigilantes Drag Gas Prices Near 3-Month High

Tyler Durden's picture




 

UPDATE: Gas Prices reach all-time high in Oklahoma City

With the bond vigilantes still suppressed by the heavy boot of central bank intervention, the role of 'governor' of monetary (and fiscal implicitly) largesse has been left to the energy markets around the world. As we noted here, the Brent Vigilantes have indeed capped economic gains in the past few years (and perhaps more worryingly for investors, as we detailed here, have capped P/E expansion hopes). Sure enough, with a one-month lead, crude oil prices are leading retail gas prices higher (now near three-month highs) which point to a rally-ending, economy-sapping $3.80 price within the next few weeks (unless oil prices are rapidly suppressed too).

 

 

and as a reminder, seasonally, things are picking up...

 

and while we are still below record levels on the average, there are pockets where prices are already at record highs...

According to AAA Oklahoma's gas price tracking website, on Sunday, the average price in Oklahoma City for a gallon of self-serve regular gasoline is at its highest point ever, $3.963, breaking Saturday's price of $3.952, which was also a record high.

Charts: Bloomberg

 

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Mon, 05/20/2013 - 11:34 | 3580394 Winston Churchill
Winston Churchill's picture

That will teach the EU who is boss.

Their probe into oil price fixing has boomeranged.

Mon, 05/20/2013 - 12:44 | 3580715 NotApplicable
NotApplicable's picture

Good thing they told me that the new record high broke the old record high, else I might've never figured that out.

...breaking Saturday's price of $3.952, which was also a record high.

Mon, 05/20/2013 - 13:03 | 3580787 SafelyGraze
SafelyGraze's picture

just came back from the oil execs meeting

although the nank doesn't like to boast about the tens of B floated to globaloilcorp, it sure goes a long way toward reducing the retail prices

if we had to pass along the "actual cost" (whatever the hell *that* means nowdays) of exploration and production and delivery, your eyeballs would bleed

and realistically speaking, nobody hoards the stuff. what does your tank hold? 16 gallons? and how long before you use it up? a week maybe? two weeks, tops?

it's a financial miracle. billions of fiat. no inflation. profits for all of us. bonuses galore. 

a miracle.

what a great century. 

a new american century.

 

Mon, 05/20/2013 - 15:51 | 3581486 negative rates
negative rates's picture

Just send the gas over on a boat and don't concern yourself w/ the environmental problems and logistics. You'll sleep better at night.

Mon, 05/20/2013 - 11:37 | 3580405 Colonel Klink
Colonel Klink's picture

Key to any good theft is timing.

Mon, 05/20/2013 - 11:40 | 3580406 JustObserving
JustObserving's picture

And bond vigilantes and gold and silver vigilantes have been shot in the head. The only vigilante left is Bernanke.

Mon, 05/20/2013 - 11:38 | 3580407 HD
HD's picture

"(unless oil prices are rapidly suppressed too)"

Unless? Central banks are going to manipulate every market until it breaks beyond repair. They should just make Cramer the next Fed Chairman in January and be done with it.

Mon, 05/20/2013 - 12:46 | 3580717 NotApplicable
NotApplicable's picture

Now that would make for testimony worth watching. Especially if he keeps his sound board.

Mon, 05/20/2013 - 13:03 | 3580792 HD
HD's picture

"Especially if he keeps his sound board."

Love it. Awesome idea. No speeches just BUY BUY BUY and animal noises to direct Fed policy.

 

 

Mon, 05/20/2013 - 15:55 | 3581502 negative rates
negative rates's picture

Yea soon as he hits his falseto it's game, set, and match over he wins. And that happens at 10 in the morning on a mildly busy day. It takes until 6 that night for him come down off his high and start over again on his terms. So really the day never ends for him.

Mon, 05/20/2013 - 17:53 | 3581870 HowardBeale
HowardBeale's picture

I have to say, I can't stand Cramer the Criminal, but we're so fucked right now, we might as well get a little entertainment value as we burn down the house.

Cramer for Treasury Secretary!

Mon, 05/20/2013 - 11:39 | 3580413 Osmium
Osmium's picture

$3.80?  $4.20 Here in Minnesota right now.

Mon, 05/20/2013 - 11:47 | 3580440 Glass Seagull
Glass Seagull's picture

Is it Brent vigilantes, or is it the oil->XOM->S&P linkage sheriff?  If Apple can't shoulder the responsibility, XOM must.

 

 

 

 

Mon, 05/20/2013 - 11:47 | 3580441 ejmoosa
ejmoosa's picture

Foreign commodities will increase in value against a declining dollar before we see it here in the homeland commodities.

Mon, 05/20/2013 - 11:47 | 3580442 slaughterer
slaughterer's picture

WTI/Brent: the only commodity to be bullish on.

Mon, 05/20/2013 - 11:50 | 3580452 walküre
walküre's picture

until people abandon their cars en masse and saddle up horses instead..

seriously, how long can it go on? Driving habits have changed for everyone because there's no money left to fill up the tank. Fuel consumption at all time lows. I'm not making this up.

free money from the CBs is killing the economy and people

Mon, 05/20/2013 - 15:57 | 3581514 negative rates
negative rates's picture

Just a minute ago it was killing the cars, now it's the economy and people. Who's next?

Mon, 05/20/2013 - 14:16 | 3581094 Snoopy the Economist
Snoopy the Economist's picture

Slaughterer: I think your a trader so I wanted to ask if you noticed that the fed has been trying to change the correclation between the dollar and market. Now as the dollar drops the market drops and vice-versa. It's difficult to see with all the manipulation (since teh market mostly goes up regardless of anything) but today is pretty clear.

 

What say you?

Mon, 05/20/2013 - 11:53 | 3580463 csmith
csmith's picture

Tyler Durden should change his name to "Sure Enough".

Mon, 05/20/2013 - 11:54 | 3580468 Hulk
Hulk's picture

Wait a minute, we are going to be energy independent by 2020, why would prices be going up ???

Mon, 05/20/2013 - 14:19 | 3581100 Flakmeister
Flakmeister's picture

Because we don't live in a make-believe fairy land?

Mon, 05/20/2013 - 12:04 | 3580510 The Invisible Foot
The Invisible Foot's picture

Happens every year. New record high gas prices.

Mon, 05/20/2013 - 12:34 | 3580661 yogibear
yogibear's picture

Those oil producing countries are smart to cut production and raise prices.

Given all the printing/currency devaluation oil should be much higher.

People are still buying plenty with $4/gal gas.

Gasoline can go much, much higher.

Mon, 05/20/2013 - 13:20 | 3580871 adr
adr's picture

So $147 oil, $4.25 gas. $98ish oil, $3.99 gas. Makes sense right?

Oil was at $100 a few years ago and gas was $2.95.

Guess that is what hapens with record demand for trading oil and gas futures. Never have to take delivery of anything but the profit you made off trading the contract 5000 times. Thanks Ben.

People are already cutting back. Gasoline demand is at 30 year lows, and they are going to keep driving it higher. You want to see a collapse in consumer demand? Give the public $5 gasoline. Walmart and Target will see sales drop 50% or more.

We're completely fucked.

Mon, 05/20/2013 - 14:22 | 3581114 Flakmeister
Flakmeister's picture

Well in all fairness you did get one thing  right.... We *are* fucked...

Mon, 05/20/2013 - 13:21 | 3580872 SillySalesmanQu...
SillySalesmanQuestion's picture

All they would need is another major false flag event like 9/11....gasoline prices would double in a week....

Mon, 05/20/2013 - 14:48 | 3581187 Flakmeister
Flakmeister's picture

Reality is starting to sink in on some of the shale plays...

http://www.foxbusiness.com/news/2013/05/20/analysis-at-margins-shale-oil-boom-tempered-euphoria/

Edit: Tyler, you really should preface an article with this with the recent outages of mid-continent refiners.... After all, that is the real reason for the OK move....

Mon, 05/20/2013 - 18:33 | 3581992 The Heart
The Heart's picture

We have said it for years, the oil companies that are part of the main controlling globalist elite will be used to kill the American economy. So far so good. Like a ginormous vacuum cleaner, it is sucking all Americans dry of any extra funds they might have after living and eating costs. There is no longer that extra twenty dollar bill to go out to the bars on Friday and Saturday nights. No one has any money for anything 'extra' that is not essential to basic necessities. People are learning to just say no to these babylonian evil things, as they crash the once great country America.

This must be what all the big company owners, investors, business entrepreneurs, and employees of all those big and small companies in America wanted when they voted for the "change' thing. When there is no longer any customer base at all, the companies will fold, and the employees will go home to collect unemployment until the whole system goes down to the ground. Even the babylonian goons will not be paid to go to war against their own people in America after the crash.

It goes on and on, and no one does a thing to stop it. The pig eating evil deceptive and lying things are in full control. They are heading the train off the cliff at full speed. The carefully crafted lies and deceptions of these evil pig eaters whose motto and philosophy towards the gilliad warriors is putrid and sickening in the steerage of the world into another world war for who to profit from? Sad as it is, because so many of these lackeys and slow ball slime are going along with the whole entire ugly babylonian plans to kill America, they too will eventually fall. Maybe even before they get out of the gate of evil from which they are spawn.

Do as they tell you to do. Just say no and stop spending money when you can. If you do, put it into tangibles and commodities you can hold in your hands. Do pure just for you self-gifting to make yourself happy also. God knows you good folks deserve it, and God knows about the rest, too. There is absolutely no escape from karmic Justice. You will reap what you sow. It is the Law.

When you have been to hell and back, you are gifted with a choice. To go back to hell, or to live in the opposite place of that. Sez the universe to each and every soul; your words, deeds, and actions are your judges. Not anything, or anyone else. Choose well sed the old Knight.

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