• Gold Money
    05/03/2016 - 11:35
    Crude oil time-spreads have completely dislocated from inventories. Historically, such dislocations have proved to be short lived. We expect that either spot prices will sell-off again or the back...

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 | 3713996 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 | 3714011 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 | 3714099 jbvtme
jbvtme's picture

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

Tue, 07/02/2013 - 11:42 | 3714103 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 | 3714257 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 | 3714312 Cobra
Cobra's picture

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

Tue, 07/02/2013 - 13:20 | 3714451 12ToothAssassin
12ToothAssassin's picture

No, rape is illegal therefore it never happens.

Tue, 07/02/2013 - 14:48 | 3714747 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 | 3715327 vulcanraven
vulcanraven's picture

$4.55 in Beverly Hills

Tue, 07/02/2013 - 11:39 | 3714100 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 | 3714110 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 | 3714759 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 | 3714087 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 | 3714088 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 | 3714184 CheapBastard
CheapBastard's picture

$4 is still cheap compared to Asia and Europe.

Tue, 07/02/2013 - 16:53 | 3715207 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 | 3714372 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 | 3714526 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 | 3714623 Flakmeister
Flakmeister's picture

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

Tue, 07/02/2013 - 16:59 | 3715227 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 | 3715317 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 | 3715686 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 | 3715697 Flakmeister
Flakmeister's picture

Now run along troll....

Tue, 07/02/2013 - 20:44 | 3716041 Things that go bump
Things that go bump's picture

I don't think I will.

Tue, 07/02/2013 - 23:02 | 3716550 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 | 3716467 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 | 3716727 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 | 3725393 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 | 3714005 Dr. Engali
Dr. Engali's picture

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

Tue, 07/02/2013 - 11:27 | 3714041 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 - 11:38 | 3714090 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 | 3714101 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 | 3714186 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 | 3714305 krispkritter
krispkritter's picture

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

Tue, 07/02/2013 - 12:46 | 3714350 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 | 3714538 Meat Hammer
Meat Hammer's picture

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

Tue, 07/02/2013 - 11:46 | 3714123 Dr. Engali
Dr. Engali's picture

She is a fucking retard and a disgrace.

Tue, 07/02/2013 - 11:59 | 3714178 knukles
knukles's picture

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

Tue, 07/02/2013 - 14:56 | 3714794 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 | 3714012 Flakmeister
Flakmeister's picture

To be followed by $5.....

Tue, 07/02/2013 - 11:24 | 3714034 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 | 3714102 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 | 3714773 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 | 3714846 Flakmeister
Flakmeister's picture

Plenty of supply? Really?

Care to elaborate?

Tue, 07/02/2013 - 12:12 | 3714233 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 | 3714340 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 | 3714721 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 | 3714013 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 | 3714078 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.

 

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