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Gas Prices Have Biggest Daily Jump In 6 Months
Do not worry, we are told on a daily basis, the rise in crude oil prices is transitory and won't affect gas prices and implicitly the US consumer's pocket book (already ravaged by spiking mortgage rates). Well, sorry to burst that little fantasy but gas prices in the last few days have surged (up 9c in 4 days). In fact today's jump is the largest in six months and pushes regular close to its all-time high for this time of year. Arguing not to worry as gas prices are more sensitive to Brent is a non-starter as it is very evident, despite the export of WTI, that gas prices are tracking the higher prices of crude oil and if history is any guide - with regard the lead-lag from crude to wholesale gasoline to retail, gas prices will be at new all-time highs for this time of year within the next month.
Biggest spike in six months...
and where is it heading?
Charts: Bloomberg
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Taper on (in a humane world).
Bush's fault, since 'he's an oilman'
BULLISH! Yayyyyyy!!
I thought scraping the hash pipe called the Bakken was going to save us all from the ravages of Peak Oil?
Drill Baby Drill didn't quite work out as advertised. considering the source, why am I not surprised....
This is clearly the fault of the insolent Egyptian army overthrowing the Muslim Brotherhood ObaMao installed dictator, which of course ObaMao has NOTHING to do with!
Simply making shit up I see...
Exclusive: US bankrolled anti-Morsi activists
BTW You don;t think that the WTI price has anything to do with reduced pipeline utilization on account of the worst floods in recorded history in Alberta (and a recent pipeline leak)??
Here, LMGTFY
http://lmgtfy.com/?q=Enbridge+pipeline+alberta+%20flood
I'm not gonna worry until I have to eat gasoline
Unless your off the grid, everything you eat uses gasoline....
No problem. My Hummer's got a very big gas tank.
This is fine.
Let them ride bike!
Ha:)
I laugh a your $4 a gallon gas price,
Juice costs €1.70 in Europe...........
PER LITRE!!!!!!!
Welcome to socialist hell my hot dog munching friends,
Ron - 2016
Go suck some more juice Eurotrash!
'Hot dogs'...lol go down another plate of haggis!
:)
I'v never even tasted haggis, I'm Irish,
And we're in the middle of a heat wave, so it's steak on the BBQ tonight, avec chips, and lots of Bordeaux,
Don't get me fckn started on the price of Beef:)
Higher gas...meat of the sequester layoffs starting...sounds super bullish to me
But there was plenty of money $100 million to blow for ObaMao's whirlwind tour of Africa!
Petrodollar recycling is a friend to elevate Down Jones.
It's about time!
With all of the Fed's printing it should take a great deal more petro dollars to buy that gallon of gasoline.
Bubble Bernanke, try printing up more oil.
Oil producers and refiners why produce more? Hold back and demand much higher prices. Gas should more than $6/gal with all of the Federal Reserve's massive printing.
I went into work yesterday morning and the gas right down the street was $3.29. I went to lunch and it was $3.80.
Doc I thought about a month ago you were at $4.25. I figured you would be at $5 soon.
What did i miss?
Refinery issues and upgrades for the Great Lakes area.. It was like 4.15$ in Michigan a few weeks ago.
Those are just convenient excuses for when the prices are down.
What color is the sky where you live?
Yeah it's an 'excuse'. Actually refineries need maintance like other things. Though one would not expect Gas prices to go from 3.6 to 4.3 (maybe a week). Literally another week the prices droped down from 4.3 to 3.3 and then popped to 3.6 and now 3.85.
The swings are getting pretty intense. Used to be 10% weekly moves were the norm - now it's approaching 20-25%.
(sarc) Ben keeping his hand on the 'price stability' tiller. (sarc)
Long ago after hearing blather about the US petroleum reserve I created the OldE_Ant gasoline reserve which gives a 2-4 month supply depending on usage. Cost avg'd typically to about 3.5-3.6. If others havn't done the same I suggest doing something similiar because I don't see price fluctuations decreasing.
OldE
Have you been watching RINs?
Print Federal Reserve, print!!!
Guess Obama and the Federal Reserve want $10/gal gas.
It jumped about .40 by me today. Glad I filled up last night with the "cheap" 93 @$4.05.
My car is paid off and I get about 30 mpg combined highway/city driving. So glad I don't drive a big dumb SUV to work everyday as I'd be paying double for gas monthly.
$5.00 gas here we come!
According to CIBC World Markets:
The world remains a place where enormous amounts of debt just keep stacking up. Paying this debt back is constantly believed to be less of an issue given the crucial assumption that economic growth rates in the order of 3% to 5% will return AND will be sustainable. Even if it does, it must be noted that “total payback” of the debt could be unlikely to ever be achieved. At some US$18 trillion of total debt in the U.S., it would take 14,400 million ounces of gold or some 160 years’ worth of annual global gold mined supply (at the current price of some US$1,240/oz. and at current global output of some 2,800 tonnes per annum) to pay this down. At the same time, gold production is about to take an almighty knock and we won’t be surprised to see as much as 25% less gold output in the next five years.
Still, much of this precarious (let’s just stop the debt load from growing) position is critically dependant on very low interest rates being maintained – once rates start moving higher, debt repayment schedules quickly blow out, while the value of bonds, in particular government bonds, starts to decline. The current dramatic decline in the value of government bonds will already see banks’ balance sheets shrinking again, with possible resultant liquidity squeezes across the globe. Euro sovereign debt costs are already up dramatically and Italy is seemingly also sitting with an apparent +30 billion euro loss in the derivatives market…
This could very quickly turn out to be a very bad scenario, but the point, as far as we are concerned, is really that it does not even need to get to this for the markets to start realizing that currencies will have to depreciate much further – we believe this to be a crucial mechanism for delivering lower sovereign debt levels long term. Gold will be the currency that continues to benefit in the longer term. So, making a positive case for the gold price is not too difficult – particularly if inflation becomes a problem much sooner than everybody currently expects.
The real problem, unfortunately, is that all of this argument is dependant on data that will only become apparent much later down the line. Right now, nobody is willing to go against the Fed. That simply means bonds and gold are both getting the “chop” because the Fed is signaling a return to stronger economic growth – leading to a stronger U.S. dollar.
The middle east sneezes, the speculators jump.
Shame that we can't get a handle on those who are setting those prices in the US to prevent these absurd raises (and prevent any attempt at a shortage).
Gas prices are going up in July? Wow, that never happens.
/s
Algos have to close out their gas price futures, so they need to do a quick price spike to get some momentum suckers to bite.
My neighbor drives a Hummer. Waa-hahahaha