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Here Comes $4 Gas

Tyler Durden's picture





 

With Egypt's stock market jumping its most in a year and US equities exuberant over the bad data this morning, it seems the world is ready to ignore Egypt for now. Of course, as we noted here, there are some growing concerns about what is possible and probable should the coup occur. Suez Canal closure fears and US infrastructure problems have smashed WTI crude prices above $99 - its highest in over 9 months - and overlaying the lagged retail price shows we could see near $4.00 gas at the pump by August. As a gentle reminder of why US equity investors should care... there's something scary about the $3.80 level.

Given historical correlations (and in this case we pre-suppose that correlation is causation), it appears gas prices are set to jump notably in the next month...

 

and as we noted previously, that will cap P/E ratios (which will hurt stocks in a dismal earnings environment)...

 

Charts: Bloomberg

 


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Tue, 07/02/2013 - 11:15 | Link to Comment Its_the_economy...
Its_the_economy_stupid's picture

No problem, just don't buy any. Forget about earning a living, paying taxes, or whatever. Move to a big city and get yer SNAP card. All better now?

Tue, 07/02/2013 - 11:18 | Link to Comment GubbermintWorker
GubbermintWorker's picture

I'd rather live in the country, ride a bike, and get a SNAP card.

Tue, 07/02/2013 - 11:41 | Link to Comment jbvtme
jbvtme's picture

what about a snatch card?  that would take some of the pressure off

Tue, 07/02/2013 - 11:42 | Link to Comment The Juggernaut
The Juggernaut's picture

Don't worry.  Obama will open the reserves like he did last time.  Relief will be temporary though.  All the leaks in the ceiling will be too much and the house will crumble soon.

Tue, 07/02/2013 - 12:19 | Link to Comment 12ToothAssassin
12ToothAssassin's picture

Near $4 gas? If by *near* you mean $4.27 around here then yes, near $4/gal.

Tue, 07/02/2013 - 12:33 | Link to Comment Cobra
Cobra's picture

That's rape... Gas is under $3.50 here in NH.

Tue, 07/02/2013 - 13:20 | Link to Comment 12ToothAssassin
12ToothAssassin's picture

No, rape is illegal therefore it never happens.

Tue, 07/02/2013 - 14:48 | Link to Comment aerojet
aerojet's picture

MN bounced up from like 3.50 to 4.30 Memorial Day weekend, we were 3.21 last night.  Probably on the rise again today now with this bullshit.  And bullshit is all it is, too.  Americans are taking a beating and will take a beating until we put our collective feet down and kick the bankster assholes out.

 

 

Tue, 07/02/2013 - 17:29 | Link to Comment vulcanraven
vulcanraven's picture

$4.55 in Beverly Hills

Tue, 07/02/2013 - 11:39 | Link to Comment fonestar
fonestar's picture

People will still bid gas at $10... $20... $50... whatever.

Anything to support their vehicle addictions and prevent them from having to walk to the store to buy milk and eggs.

Tue, 07/02/2013 - 11:44 | Link to Comment Canadian Dirtlump
Canadian Dirtlump's picture

small matter of even if they walk to the store, the milk and eggs were driven their by a hydro carbon powered vehicle. So unless you can walk to the farm where the farmer did everything by hand, you're fucked. the suburbification of the US is a huge issue, but it is way bigger than that. Just look at every cargo plane, train and semi.

Tue, 07/02/2013 - 14:49 | Link to Comment aerojet
aerojet's picture

What you are talking about has nothing remotely to do with the bullshit going on in Egypt.  There is plenty of fucking oil. 

Tue, 07/02/2013 - 11:39 | Link to Comment Canadian Dirtlump
Canadian Dirtlump's picture

indeed, much like every other issue, government debt, financial fraud, bubbles everywhere, precious metals meddling - it is easier to punt than to go for it.

 

All it does is makes the eventual calamity worse. At that point I assume we'll be able to blame it on Iran, Russia and China's imperial ambitions which directly threaten israel.

 

In other news, crude storage at records, production robust, and demand collapsing.

Tue, 07/02/2013 - 11:37 | Link to Comment slaughterer
slaughterer's picture

Here comes Obama the Saviour releasing the Strategic Oil Reserves for China to lap up and to create a good vibe with the Patriots celebrating the 4th of July.  

Fuck SNAP cards, I want an Obama-funded Lap Dance Bar. 

Tue, 07/02/2013 - 12:00 | Link to Comment CheapBastard
CheapBastard's picture

$4 is still cheap compared to Asia and Europe.

Tue, 07/02/2013 - 16:53 | Link to Comment Things that go bump
Things that go bump's picture

That may be, but I have read that somewhere north of $100 a barrel the economy goes south.

Tue, 07/02/2013 - 12:57 | Link to Comment Jack Burton
Jack Burton's picture

They are moving from the Big city to smaller cities in the 100K pop. range. They can escape big city problems and still gain all the welfare benefits. I live 30 miles from such an upper Mid West regional city and for the last decade, Chicago and Detroit have sent large numbers of people to that city. In a decade the streets have changed into a mini version of Detroit. I have yet to see ONE of them engaged in work. The shop, they drink, they eat, they drive around, they ride the bus around, they hang around the big box stores, I have NEVER, EVER seen one with a job. This is the future, I live in a town of 3K pop. we already have 4-5 of these Chicago, Detroit people who are living here now. The welfare remains the same, if not better outside the Big Cities.

Tue, 07/02/2013 - 13:40 | Link to Comment sgorem
sgorem's picture

"we could see near $4.00 gas at the pump by August." I don't know where you live, but if you think the fucking retail gas dealers are gonna wait until AUGUST to jack gas up to $4.00 + a gallon, you've been smokin way too much hopium lately. All they need is to have some MSM headline about the prospect of a bottleneck in crude to get the shears out. We need some "Hope and Change"! Oh shit, I keep forgetting, we've been getting that Hope Enema for awhile now haven't we? FUCK YOU UNCLE SAMBO!

Tue, 07/02/2013 - 14:16 | Link to Comment Flakmeister
Flakmeister's picture

Why not say what you really feel and just call him a nigger?

Tue, 07/02/2013 - 16:59 | Link to Comment Things that go bump
Things that go bump's picture

You guys keep this shit up and Tyler is going to have to hire a moderator. Then you get to wait until your posts are vetted for offensive content before they show up on the board. Pretty soon, ZH will look like Huffington Post. Police yourselves or Tyler will have to do it for you.

Tue, 07/02/2013 - 17:27 | Link to Comment Flakmeister
Flakmeister's picture

After a paragraph long rant, he calls Obama a Sambo???

That is pretty fucking pathetic as the guy is obviously a Racist...

FWIW, the only thing Tyler "censors" are holocaust deniers as they tend to destroy the value of the commericial franchise he has worked to build...

So take your faux outrage and shove it up your ass....

Tue, 07/02/2013 - 19:05 | Link to Comment Things that go bump
Things that go bump's picture

I don't personally care and don't outrage easily, faux or otherwise, but I suggest you reread the policy on racial discrimination at the bottom of the page. It does not appear to apply only to one particular group. What I do care about is that the comments section continues to function as it has, and we have been warned. I hardly think my mild comment warranted such a violent response.

Tue, 07/02/2013 - 19:07 | Link to Comment Flakmeister
Flakmeister's picture

Now run along troll....

Tue, 07/02/2013 - 20:44 | Link to Comment Things that go bump
Things that go bump's picture

I don't think I will.

Tue, 07/02/2013 - 23:02 | Link to Comment sgorem
sgorem's picture

"as the guy is obviously a Racist".........i had a great literary retaliation masterpiece typed out here in response to your boring and asinine remark, but honestly, you're only worth a fuck you. take another drink, or hit, and crawl back into your hole Little Red Arrow.

Tue, 07/02/2013 - 22:37 | Link to Comment sgorem
sgorem's picture

personally, WHEN I CAN'T SAY SHIT, DAMN, FUCK, HELL, OR SAMBO IN A SENTENCE ON HERE, THEN I'LL DELETE MY FUCKING LOGIN MYSELF! and without the help of any first admendment crusher.

Wed, 07/03/2013 - 00:25 | Link to Comment Flakmeister
Flakmeister's picture

Hey, I don't give a fuck about what you say, after all it says more about you than anything else....

Fri, 07/05/2013 - 20:37 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

holy shit, he's not bluffing!!

There's always more than one way to /sarc a cat.

Tue, 07/02/2013 - 11:17 | Link to Comment Dr. Engali
Dr. Engali's picture

Damn greedy oil companies! I demand a boycott and a congressional investigation!

Tue, 07/02/2013 - 11:27 | Link to Comment NoDebt
NoDebt's picture

Yeah, I think we're about due for the bi-annual "oil company windfall profits tax" Congressional circus to come back to town.

Tue, 07/02/2013 - 11:31 | Link to Comment krispkritter
Tue, 07/02/2013 - 11:38 | Link to Comment knukles
knukles's picture

Amazing.  Somebody once said that she had trouble hooking her own bra and she and her ilk "gonna run dem earl cumpnies fo da peoples".

http://myfox8.com/2013/07/01/push-for-teen-curfew-after-massive-fight-br...

Anybody a gettin' tired this shit?

Tue, 07/02/2013 - 11:41 | Link to Comment krispkritter
krispkritter's picture

Yeah, we'll put her, Pelosi, and Hank Johnson in charge.  What can go wrong?

Tue, 07/02/2013 - 12:01 | Link to Comment nope-1004
nope-1004's picture

 

 

One of my favorite Maxine stupid-ass comments.

http://www.youtube.com/watch?v=u8-d95SO_3g

http://www.youtube.com/watch?v=pwkrYzasE1E

Tue, 07/02/2013 - 12:32 | Link to Comment krispkritter
krispkritter's picture

Can you imagine if her and Hank Johnson had offspring? (shudders) OMFG

Tue, 07/02/2013 - 12:46 | Link to Comment GubbermintWorker
GubbermintWorker's picture

Don't forget this one....with friends like her, lol!!

 

http://www.youtube.com/watch?v=eIA1lQBqH1s

Tue, 07/02/2013 - 13:45 | Link to Comment Meat Hammer
Meat Hammer's picture

Tough to see....that video is awfully dark.

Tue, 07/02/2013 - 11:46 | Link to Comment Dr. Engali
Dr. Engali's picture

She is a fucking retard and a disgrace.

Tue, 07/02/2013 - 11:59 | Link to Comment knukles
knukles's picture

Comes off as a tad crazy, to me...

Tue, 07/02/2013 - 14:56 | Link to Comment Miffed Microbio...
Miffed Microbiologist's picture

Greedy oil companies? I thought it was the evil speculators. I get so confused who I'm supposed to shake my fist at.

Miffed;-)

Tue, 07/02/2013 - 11:18 | Link to Comment Flakmeister
Flakmeister's picture

To be followed by $5.....

Tue, 07/02/2013 - 11:24 | Link to Comment DaveyJones
DaveyJones's picture

how high can you count.? Don't know if we've had this chat, but was meaning to ask u, do you think, ultimately, that govts cross the world will seize the stuff and the market (not like the way we already do) as it gets tighter and tighter?

Tue, 07/02/2013 - 11:41 | Link to Comment Flakmeister
Flakmeister's picture

That is a very likely possibility....

I told my boss back in 2006 that I would not be suprised if public traded oil contracts would not exist in 2016....

I may have been early though...

Tue, 07/02/2013 - 14:52 | Link to Comment aerojet
aerojet's picture

They need to run the speculators out of the market.  They got the free money from the fed and ran out and made a fortune and are still at work.  Nothing else explains the volatility in retail gas prices--huge $1 and $.50 cent jumps with plenty of supply.

Tue, 07/02/2013 - 15:08 | Link to Comment Flakmeister
Flakmeister's picture

Plenty of supply? Really?

Care to elaborate?

Tue, 07/02/2013 - 12:12 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

"do you think, ultimately, that govts cross the world will seize the stuff"

 

There are phases to the response to scarcity.

Phase 1, use military force to ensure oil doesn't wind up in hands that would refuse it to all others as an instrument of policy (as FDR did to Japan in Aug 1941).  This is underway now, with Iraq -- and the IMF refusing loans to Egypt if they do not cut domestic subsidy.

Phase 2, use military force to ensure supply flows to YOU.  This would be a ramp up.  Perhaps hijacking tankers on the high seas and diverting them to Houston refineries (from presumably Shanghai refineries).

Phase 3, use military force to suppress competing consumption.  That's called killing people who burn oil.

 

 

Tue, 07/02/2013 - 12:45 | Link to Comment DaveyJones
DaveyJones's picture

so...burning oil to kill people...who are burning oil.  

"can't we all just get along?'

Oh wait, he died of alcoholism. another liquid addiction

liquid addiction...liquidity addiction...guys named dick addiction...the "ass"onance is killing me

Tue, 07/02/2013 - 14:44 | Link to Comment Non Passaran
Non Passaran's picture

> the IMF refusing loans to Egypt if they do not cut domestic subsidy.

It's not like that can get them anywhere. I wouldn't lend them money if they subsidized oil either.
I don't see what that has to do with anything.
They need to be able to export something.

Tue, 07/02/2013 - 11:18 | Link to Comment Dr. Kenneth Noi...
Dr. Kenneth Noisewater's picture

And yet power is still $0.11/kWh.  Glad I only burn about 80 gallons per year between my lawnmower, motorcycle and Volt.

Tue, 07/02/2013 - 11:35 | Link to Comment akarc
akarc's picture

2 motorcycles check, push lawn mower check, short oil check

, long gasoline, junior gold miners, shotgun shells (some interesting combinations out their), veggie garden, whiskey, tobacco, sugar, check

Short government and their ability to to facillitate infrastructure development.

 

Tue, 07/02/2013 - 12:14 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

A man who does not go anywhere is not alive. 

No plane trips?  No rides to the airport?

Tue, 07/02/2013 - 12:36 | Link to Comment Blano
Blano's picture

Not everybody wants to get radiated or molested.

Tue, 07/02/2013 - 13:08 | Link to Comment tmosley
tmosley's picture

Gotta love those false distinctions.  They really make one feel superior, don't they?  Hell, you could hardly call those who don't travel human, could you?  Not that far a leap to put such non-people into camps to work for real humans.

Tue, 07/02/2013 - 13:21 | Link to Comment DCFusor
DCFusor's picture

About the same here, Dr - I have a Volt too, but more acres to mow (it would seem).  And in my case, power comes from the solar array on my house.

What's this BS about "if you don't travel all the time, there's something wrong".  I don't get it - travel is a way to waste productive time while running costs up in today's world.  There's this internet thing...My consulting firm telecommuted since about '80, till I retired awhile back.

Tue, 07/02/2013 - 14:20 | Link to Comment Dr. Kenneth Noi...
Dr. Kenneth Noisewater's picture

Commute miles alone for me run 250/wk, which net out to about 2.5 cents per mile (between 'free' work and retail home charging), so for 250 * 50 * .025 = $312.50 in electricity for the year.

 

As far as solar goes, I'd been looking to get a year's stats on usage to have a good idea on sizing a grid-tie with battery backup, but given where cheap $$ is going I may pull the trigger early.  Peak usage so far has been about 2000kWh/mo, I've been thinking 10kW panels would be ideal.

Tue, 07/02/2013 - 12:34 | Link to Comment Bear
Bear's picture

$3.80 .... Would love that in SoCal .... $4.15 here

Tue, 07/02/2013 - 18:12 | Link to Comment Miffed Microbio...
Miffed Microbiologist's picture

I hear you Bear. Plus SDG&E charges near the top in the country. Two years ago our electric bill hit over $700/month in summer with our thermostat set at 80 degrees. Went to solar and told them to fuck off. Rates are set to go up 17% again in August. Solar was the best investment we have made in a long time.

Miffed;-)

Tue, 07/02/2013 - 11:21 | Link to Comment DaveyJones
DaveyJones's picture

and here comes $1 fives 

Tue, 07/02/2013 - 11:22 | Link to Comment ebworthen
ebworthen's picture

Get me off this merry-go-round.

Tue, 07/02/2013 - 11:25 | Link to Comment Headbanger
Headbanger's picture

If only we had cars that ran on bullshit...

Tue, 07/02/2013 - 11:28 | Link to Comment NoDebt
NoDebt's picture

... or lies.

Tue, 07/02/2013 - 11:29 | Link to Comment Odin
Odin's picture

Yeah but then we'd have to deal with a bullshit cartel manipulating yet another market... At the very least they would give the American mainstream media a run for their money (err, shit)...

Tue, 07/02/2013 - 12:23 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

People just don't get it.

Bullshit doesn't require 30 story structures with 30,000 horsepower marine engines on them to travel to a spot over 2 miles of ocean to drill down another 3 miles under the seafloor.

That level of joules expenditure is not free, and it's being done for smaller and smaller bubbles of oil.

Bullshit you can collect with a shovel.  Oil now requires godawful expense just to get a 42 gallon barrel out.

People just don't get it.  This doesn't improve.  Ever.  It gets worse and worse and worse.

Tue, 07/02/2013 - 14:54 | Link to Comment aerojet
aerojet's picture

Again, the price jump today has NOTHING to do with what you are describing.

Tue, 07/02/2013 - 11:29 | Link to Comment krispkritter
krispkritter's picture

We save that for running Congress...it's Green! Sorry; it's about the Green(backs)!

Tue, 07/02/2013 - 11:47 | Link to Comment Jumbotron
Jumbotron's picture

"If only we had cars that ran on bullshit..."

They run on pig shit Down Under after the "Pockylypse" in Mad Max 3.

Tue, 07/02/2013 - 11:48 | Link to Comment akarc
akarc's picture

We do, they are called electric cars. Powered by oil and coal powered electricgeneration plants.  if you plug them in.

Just finished 7000 mile cross country MC trip. Electric cars barely noticable othe than CA.  People driving while texting, talking   and trying to kill you pandemic. Gave up on horn and filled vest with rocks. Works better. Thinking but going long verizon and trauma centers.

Tue, 07/02/2013 - 12:26 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

A cross country trip is 3000 miles.  These electric things have 40 miles between overnight charge.  That's about 2 years to make the trip, assuming they can find chargers every 40 miles.

 

 

Tue, 07/02/2013 - 13:25 | Link to Comment DCFusor
DCFusor's picture

The Volt also has a gasoline engine, on which it gets about 40 mpg, not that I do cross country trips often, or in a car.  I power mine for local trips off my own solar power - totally off-grid.  Gas here is currently 3.29 for regular, 20c more for ethanol free  (SW Virginia).

 

The Volt charges in 4.5 hours from dead here, dunno where you get your numbers.

Tue, 07/02/2013 - 14:08 | Link to Comment MachoMan
MachoMan's picture

I wonder how long it would take to just push the sonovabitch?

Tue, 07/02/2013 - 19:25 | Link to Comment Miffed Microbio...
Miffed Microbiologist's picture

We have a Leaf and it gets about 80 miles. Many in San Diego report they can get close to 100 if they are doing town driving on the flat under 40 mph. We live in the mountains which significantly reduces it's range. It works very well for us and we saved $2500 last year in fuel costs. It is not for everyone but with our solar it makes sense for us. I know people here think its a false economy due to the subsidies but considering we pay $55,000 a year in state and federal income taxes, we consider it a well deserved refund.

Miffed;-)

Tue, 07/02/2013 - 12:39 | Link to Comment Flakmeister
Flakmeister's picture

Just remember that when shit becomes valuable, the poor will be born without assholes....

Tue, 07/02/2013 - 12:48 | Link to Comment GubbermintWorker
GubbermintWorker's picture

We do but you first have to convert it into methane gas via anaerobic digestion.

Tue, 07/02/2013 - 11:30 | Link to Comment Shizzmoney
Shizzmoney's picture

It's been at $3.57 for a good 1-1.5 months here in MA, and even down to $3.53 as of recently......I'd thought we would be higher by now, but considering that a) gas prices have historically always been depressed in POTUS election cycles and b) the overall deflation in the economy (ex: declining wages and rising debt effecting consumer behavior).....the fact it took THIS long to get to $4 again really goes to show how weak the economic environment has become.

However, the fun doesn't begin until Q2 of 2014.  That's when, IMO, the bond yields (bonds will be the next bubble, and these things tend to burst at the end of US Presdiental terms).  Add to a potential of another bad winter (and it's effects on replenishing the pumps, see Sandy and NYC)...and yearly Middle East conflict.....we could see $5 gas closer than you think.

Tue, 07/02/2013 - 11:25 | Link to Comment krispkritter
krispkritter's picture

Amazing how a commodity has a 'fear' price component built in.  I guess they're 'afraid' their profits aren't high enough or their trades not worth as much. 'Oh noes! We might(might!) close a waterway! The madness! What will we do!(I know, raise prices)'

As I'm now doing 80% of my work via remote networking, 90% of my shopping on the web, and get most of the food I don't grow in bulk, I'm 'afraid' I won't be needing nearly as much gas, so kiss my ass...I think I'll go mow the lawn with my electric(solar charged) mower.

Tue, 07/02/2013 - 11:26 | Link to Comment Ace Ventura
Ace Ventura's picture

Awesome. The used 2001 Dodge Ram 4x4 I just bought is going to look spiffy sitting in the driveway collecting seasonal pollen and bird poop. Gonna have to budget a trip to the hardware store or dump in advance.

Tue, 07/02/2013 - 13:21 | Link to Comment Intoxicologist
Intoxicologist's picture

LOL, I have the same truck - with a topper.  Its main purpose nowdays is as an expensive doghouse.  They lie in the back all day to escape the deer and horse flies.

Tue, 07/02/2013 - 11:26 | Link to Comment Xibalba
Xibalba's picture

Repeat after me:  There is no inflation. 

Tue, 07/02/2013 - 11:29 | Link to Comment NoDebt
NoDebt's picture

There is no inflation.

 

Tue, 07/02/2013 - 11:39 | Link to Comment knukles
knukles's picture

There is no inflation

Tue, 07/02/2013 - 11:48 | Link to Comment Jumbotron
Jumbotron's picture

I'm sorry...I wasn't paying attention.....There's no American Idol......I'm sorry...what did you say again?

Tue, 07/02/2013 - 11:35 | Link to Comment akak
akak's picture

Sarcasm, or Bernanke?

Tue, 07/02/2013 - 11:38 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

Bernankasm?

Tue, 07/02/2013 - 11:45 | Link to Comment krispkritter
krispkritter's picture

That's what he has every time he hits 'Print'...

Tue, 07/02/2013 - 11:54 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

High gasoline prices mean that Joe Shipper and Joe Commuter will have to whip out the credit card that much more often to get from A to B.  Ben - or whomever will be caretaking the Overlook Hotel that is the American economy - will again have no choice but to expand the usage of Fed-issued bits and bytes.  There will be no rationing.  There will be gasoline coupons & vouchers & benefits, though, I am sure. 

Tue, 07/02/2013 - 12:02 | Link to Comment krispkritter
krispkritter's picture

GAS card: Gov't Auto Subsidy.  Fits nicely with yo EBT...

Tue, 07/02/2013 - 12:15 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

That's what I'm thinking.  Or maybe, GOD - Gasoline On Demand.  That'll happen for healthcare, too.  MAD cards ... Medical And Dental ... just swipe, fo MAD benefitz.

Tue, 07/02/2013 - 14:01 | Link to Comment Greshams Law
Greshams Law's picture

The gasoline vouchers can all say "All work and no play makes Jack a dull boy."

Easy and cheap to print.

Tue, 07/02/2013 - 12:13 | Link to Comment lakecity55
lakecity55's picture

There is no inflation...it does not exist....the government says so....

(keep your eyes on the spinning watch)

There is no...........

Tue, 07/02/2013 - 11:27 | Link to Comment Thin_Ice
Thin_Ice's picture

The governor in CT just raised the gas tax $.04/gal., CT already has a high gas tax. Supposedly it's to be used to repair roads and bridges. Wasn't that what the stimulus was for a few years back? Oh wait, what stimulus? I imagined the whole thing.

Tue, 07/02/2013 - 11:31 | Link to Comment Shizzmoney
Shizzmoney's picture

Gov Patrick wants to raise the gas tax by $0.03.

Another reason why I won't be buying a car.

Tue, 07/02/2013 - 12:00 | Link to Comment ebworthen
ebworthen's picture

Just like a toll road or bridge.

You have to use it to get across the river or to work, so decades after the damn thing is paid for they keep charging a toll that just goes up so they can "repair and maintain" said road or bridge.

Slush...Fund...Perpetual...Slush...Fund...

Tue, 07/02/2013 - 12:48 | Link to Comment Bear
Bear's picture

Ca up 3.5 cents yesterday

Tue, 07/02/2013 - 11:33 | Link to Comment apberusdisvet
apberusdisvet's picture

As SRSRocco quite appropriately points out in many of his posts on SilverDoctor, all PM bugs should view their holdings as products of considerable energy expenditure w/o any counterparty risk.  In fact, PMs are the only physical assets produced that never face obsolescence, wear-and-tear or repair issues.

I wouldn't doubt that his thesis is true.  $5.00 gas would definitely cause a spike in PM prices, especially since a considerable amount of miners would have already closed shop at the $4 level.

Tue, 07/02/2013 - 11:29 | Link to Comment JDFX
JDFX's picture

How will the yanks cope with $8 gas ?   Bring you in line with other western economies . 

Gas is at $8.90 in the UK.    You boy's and girls are going way higher . Way higher than $4

Tue, 07/02/2013 - 11:33 | Link to Comment Shizzmoney
Shizzmoney's picture

RE

How will the yanks cope with $8 gas?

Don't you mean, "Petrol"? :P

Anyways, how will we deal with it?

With rising accounts of gas station hold ups, gas syphoning from other cars, and riots.

I, for one, look forward to it.

Tue, 07/02/2013 - 15:13 | Link to Comment Almost Solvent
Almost Solvent's picture

Those locking gas caps will soon be back in style!

Tue, 07/02/2013 - 11:35 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

Your tax levels on gasoline are much higher.  A lot of your price differential is taxes. 

Tue, 07/02/2013 - 11:37 | Link to Comment krispkritter
krispkritter's picture

Yeah, because local, state, and .Gov will see it as another rich source of tax income they think will solve their already shitty spending problems.  And as usual, the higher prices will curb demand so that it crashes use and starts to kill off any growth derived from cheaper energy. These guys are brilliant aren't they?

What's the tax component of your $8 gas? I've heard up to 50%...

Tue, 07/02/2013 - 11:47 | Link to Comment Rip van Wrinkle
Rip van Wrinkle's picture

Over 50%.

 

Petrol is about £1.35 a litre. Of that just under 80 pence is either fuel duty or VAT (20%). We pay VAT on the price of both the petrol AND THE DUTY!!

Tue, 07/02/2013 - 12:02 | Link to Comment Seasmoke
Seasmoke's picture

Speak American please.

Tue, 07/02/2013 - 12:33 | Link to Comment krispkritter
krispkritter's picture

Is that a polite way of saying 'Dumb it down.'? ;)

Tue, 07/02/2013 - 14:13 | Link to Comment MachoMan
MachoMan's picture

fatten it up

Tue, 07/02/2013 - 11:45 | Link to Comment Winston Smith 2009
Winston Smith 2009's picture

"How will the yanks cope with $8 gas?"

Not sure, but don't the taxes that raise it to that level in Europe support an excellent mass transit system that's actually something one would want to use?

Tue, 07/02/2013 - 12:07 | Link to Comment uno
uno's picture

How will the yanks cope with $8 gas ?

Just invade another oil rich country, O gets another Nobel Peace Prize

Tue, 07/02/2013 - 11:29 | Link to Comment Devils Advocate
Devils Advocate's picture

Oh who cares we are soon to be energy independent!!

Tue, 07/02/2013 - 11:42 | Link to Comment knukles
knukles's picture

Finally!
At $346.50/bbl do-mestically produced oil, we'll show them Fucking A-Rabs a thing or two.

Goddamned pansies we gotta go and do their fightin' and killin' for em' so they can stay free...

Tue, 07/02/2013 - 12:02 | Link to Comment NidStyles
NidStyles's picture

Well everyone knows that the freedom of the Saud's and the Israeli's depends on the oppression of their neighbors.

Tue, 07/02/2013 - 11:31 | Link to Comment vote_libertaria...
vote_libertarian_party's picture

Come on man!

 

Everybody knows high and rising energy prices is a sign of economic STRENGTH and not a bad thing.

 

(those nice men on CNBS said so)

Tue, 07/02/2013 - 11:38 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

Supply scarcity is never permitted into the discussion.  North Dakota drills 135 wells PER MONTH just to get a 10,000 barrel/day production increase (last data point available).  When that next barrel costs so much effort, aka joules, aka somewhat dollars, the price can't fall.  Scarcity is invisible because any effort necessary to get the amounts up will be expended -- because the alternative is death.

This makes for rising graphs of output, and rising graphs of effort/price.

There is no fix for this.  It is forever.

Tue, 07/02/2013 - 11:43 | Link to Comment knukles
knukles's picture

Obie says that ain't true and we can tax it to fix it anyhow.

Tue, 07/02/2013 - 12:17 | Link to Comment lakecity55
lakecity55's picture

"........Under my Administration, gas and energy will have to increase. You will get used to living in cardboard boxes and dumpster diving as my Change takes place. I Hope to  Change America into Darfur."

Tue, 07/02/2013 - 12:45 | Link to Comment Flakmeister
Flakmeister's picture

That would explain why on a percentage basis the increase in gasoline prices seen over the Bush presidency was the highest ever...

And although O has nothing to do with it, the largest percentage increase in US oil production occured on his watch (and note that it did fuck all for prices as any even handed analysis of the situation would have told you)....

You really have to learn that not everything fits your preconcieved notions...

Tue, 07/02/2013 - 17:02 | Link to Comment StarTedStackin'
StarTedStackin''s picture

Sorry liar,

 

 

Gas was$1.79 a gallon on the day Bush left office.

Tue, 07/02/2013 - 17:33 | Link to Comment Flakmeister
Flakmeister's picture

Hee, hee, hee!

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=EMM_EPM0_PTE_NUS_DPG&f=M

Buddy, you don't get any credit for presiding over the worst financial collapse since the Great Depression....

Tue, 07/02/2013 - 14:23 | Link to Comment catacl1sm
catacl1sm's picture

I read that in O's voice and cadence. It was funny.

Tue, 07/02/2013 - 11:33 | Link to Comment NidStyles
NidStyles's picture

No Inflation eh??

Tue, 07/02/2013 - 11:35 | Link to Comment Wave Maker
Wave Maker's picture

In the second graph, what happened to the S&P data?  Why was it deleted from the graph?  I mean it's hard to believe there's correlation if much of the data is conveniently removed!

Tue, 07/02/2013 - 11:37 | Link to Comment Duc888
Duc888's picture

"The governor in CT just raised the gas tax $.04/gal., CT already has a high gas tax. Supposedly it's to be used to repair roads and bridges."

 

 

Hahahahaha.  you know when I-95 as well as I-84 was laid down they was never designed to carry 80,000+ rigs.  The only way to "fix" these highways is to scrape everything down and start over with a proper roadbed.

 

 

Tue, 07/02/2013 - 12:22 | Link to Comment dynomutt
dynomutt's picture

I live near I-84, so I appreciate your remark.

 

My answer is: but how would local politicians be able to justify their re-elections if they had no pork projects to bring back?

 

If they fix the roadbed once and it lasts 30-50 years, there'll be no more makework!

Tue, 07/02/2013 - 11:39 | Link to Comment Colonel Klink
Colonel Klink's picture

Want to get American's attention, just shut off gas, cable, or the internet and you'll see a revolt overnight.

Tue, 07/02/2013 - 11:44 | Link to Comment DESMO_RR
DESMO_RR's picture

What a relief! At 4.49 I was thinking it was getting a little pricey!

Tue, 07/02/2013 - 12:08 | Link to Comment Trampy
Trampy's picture

Crude oil futures are still INVERTED.  As you go out further every month in the CL futures, prices go DOWN for every further month, not UP.  This is because the market is expecting either larger supply or lower demand, or both.

Instead of an outright long position on the 2014 or 2015 contracts, you can buy an exchange-traded long-term calendar spread on CL, which would give a fantastic profit if the market returns to normal carry.

 

Tue, 07/02/2013 - 12:15 | Link to Comment adr
adr's picture

I paid $2.99 per gallon in North Carolina on Sunday. At the same time gas was $3.59 in West Virginia, $3.24 in southern Ohio and $3.69 in NE Ohio.

Oil was trading at $97ish on Friday and there was a $.70 difference along 400 miles of road.

It's all bullshit. The price skyrockets on the expectations that something will happen, when it never does the price rarely goes down.

Corn should be dropping close to $3 a bushel at the rate the crop is growing this year, but it's still stuck half way up its full retard spike last year.

Why? Because 90% of the contracts are traded by speculators that probably don't even know what a bushel of corn looks like.

Tue, 07/02/2013 - 12:35 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

 

You don't know what oil was trading at today, or Friday.

The refineries don't make their purchases public.  They are the only ones that matter, not NYMEX.

Tue, 07/02/2013 - 14:24 | Link to Comment MachoMan
MachoMan's picture

Aside from the fact that different markets have different views towards collusion.  Some local markets (for consumer gasoline) are fucking cutthroat (I live in one)...  you go a few miles any direction, and there is an unsaid norm that none of the quick store owners will undercut each others' prices and, often times, they don't have a big box store that cares to undercut them much.  This can lead to huge variations in price in just a small geographical area.

Tue, 07/02/2013 - 12:17 | Link to Comment slaughterer
slaughterer's picture

TRAMPY, you see what I see.  Short WTI is the best hedge of 2013--just keep rolling the short contracts up to $100 and sit on your ass for the crash.  

Tue, 07/02/2013 - 12:29 | Link to Comment Yen Cross
Yen Cross's picture

  $99 crude, high $dxy, high bond yields. Everything a growing export economy could wish for. /sarc

Tue, 07/02/2013 - 12:48 | Link to Comment MrBoompi
MrBoompi's picture

I paid close to $8/gal this morning.  Granted, it was for 110 Octane racing fuel though.

Tue, 07/02/2013 - 13:15 | Link to Comment orangegeek
orangegeek's picture

WTI Oil is climbing again - wave 2 up still completing.

 

http://bullandbearmash.com/chart/spot-wti-oil-daily-heads-targets-9800-1...

 

While the USD continues to climb, down pressure builds on commodities and US market indexes.

 

Deflation should pick up soon.

Tue, 07/02/2013 - 13:38 | Link to Comment akak
akak's picture

Fuck off with your ridiculous "rising dollar" bullshit already, OrangeNadler.

Tue, 07/02/2013 - 13:26 | Link to Comment roadhazard
roadhazard's picture

NC gas tax went up yesterday, my county tax just got voted up. Groceries are up a couple hundred bucks a month just from a year ago.  Thank gawd there is no inflation.

The higher gas goes the less I drive. That means the less I spend on the local economy. I could pay it but I ain't gonna'. Good luck for any "recovery" from my skin flint ass. 

Tue, 07/02/2013 - 13:46 | Link to Comment kevinearick
kevinearick's picture

The Problem Is The Solution

Gravity is ancient History. Employ it as a sling-shot or get in line.

God is quite capable of exercising judgment. If you have not cultivated a personal relationship, you should at least see that the robots destroy themselves, if left to their own designs. And if you are young, you cannot begin to fathom the reservoir of anger built by elders to contain this sh-show for so long, as fuel for the next great generation. In any case, you don’t want to enlist in a bomb-building competition, on either end.

In today’s dollars, you require the equivalent of $350k/yr to raise a family within the empire, which no empire job pays. The difference to support the empire’s ongoing assumption of solvency has to come from somewhere, and collapses with global connectivity, which shorts the artificial nation/state slave trade rotation into general perception, and nature has repeatedly proven it can provide, with appropriate feedback. As the flies die in numbers at the end of the season, like they always do, there is ample opportunity. Adjust your distance and choose your soil accordingly. You don’t want to be near a stampeding herd, a farm subsidy, or anything that may be fashioned into a bomb.

The empire majority has cornered itself, by busying itself cornering each other and taking out the corners with finance, doing you the favor of  leaving control in the hands of a few, in indefensible positions, bankrupting their own currencies for lack of skilled labor on the assumption of automation. The robots can’t get out of their own way; the local governments can no longer fund their welfare police retirement systems so the nation/states are printing themselves to death, and reversing the leverage taht funded all the empire make-work jobs, leaving the participants shut in, immobilized and trading worthless paper.

Do not mistake emotions, replicated behavior from birth, for genuine feelings. The former is automated with anxiety threshold feedback, the latter requires introspection, which requires external mobility, and they are easily distinguished. At cycle begin, the superintendent is a teacher, and best is the goal, taught by example in the workplace. At cycle end, the superintendent is a corrupt politician, and best is the enemy of better, taught in the classroom and enforced by arbitrary authority, followed by the robots automatically, effectively cleaving the front end of the distribution and consigning the rest to History, to be recycled. Be the best at being yourself, which empire peer pressure automatically filters out, and the artificial empire borders automatically evaporate, because the empire bias cannot recognize the result directly. Filter the filter to turn dc back into ac. That’s what parents do.

If you recall the distribution of event horizons separated by false assumptions, capital can only conserve the return line. You run the hot, and you can employ any form of gravity you want. You can leave capital behind, capital can change its habits, or you can price in a sling-shot. At the end of an iteration, capital controls both formal and informal authority. At the beginning, labor does. The middle class grows when formal civil capital and informal military labor are in agreement, to balance the result. Labor currently has no interest in the economy of the middle class, which seeks only capital, through replication.

Don’t come to the elevator door for a free ride or to replace the elevator mechanic. Show the old-timer how you are going to employ the skills provided to build a better system. The mechanic employs the clutch so you can install your gear, to create time forward. People who love are not lucky; that's a parrot, parroting a program for other parrots. Love is pain upon misery upon pain upon misery, self-sacrifice, on the off-chance that a youngster comes along to make it all worthwhile. Love and war are two sides of the same coin. You don’t make the investment so a new class of robots can take over for the old class, which is why the same robots are recycled over and over again at the top.

Becoming a great generation is a decision, The Imperative. The majority, but not all, of the boomers chose comfort. Life is not a leisure activity. It is built, brick by brick, by hands fashioned for the purpose, from birth. Leave the passive aggressive damsels in distress and their manufactured crises back in distress when you exit the event horizon. The problem is the solution, on both sides of the empire’s divide and conquer mirror.

Tue, 07/02/2013 - 14:39 | Link to Comment robertocarlos
robertocarlos's picture

I'm paying $5.50 now so this is good news.

Tue, 07/02/2013 - 14:48 | Link to Comment Northeaster
Northeaster's picture

I though we use Louisiana Crude domestically, not WTI?

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=f003022__3&f=m

Tue, 07/02/2013 - 15:15 | Link to Comment Flakmeister
Flakmeister's picture

We use it all, and more....Bonnie Light, Maya Heavy....

http://en.wikipedia.org/wiki/List_of_crude_oil_products

Tue, 07/02/2013 - 15:22 | Link to Comment resurger
resurger's picture

No inflation here, move along.

Tue, 07/02/2013 - 16:51 | Link to Comment StarTedStackin'
StarTedStackin''s picture

"Busch's fault he's an oilman"

Tue, 07/02/2013 - 17:45 | Link to Comment Sun and Moon
Sun and Moon's picture

I keep hearing that any day now the US will be the new Saudi Arabia because we are sitting on oceans of shale oil. I wish someone would tell that to my local gas pump.

Tue, 07/02/2013 - 21:20 | Link to Comment kurt
kurt's picture

Hey Shitballs! It's way over $4.00 in California now.

Wed, 07/03/2013 - 12:57 | Link to Comment dizzyfingers
dizzyfingers's picture

You're very late. Near $5 in my suburb.

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