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Gas Prices Hit 2-Month Highs, Rise At Fastest In a Decade
Despite still low crude oil prices, gas prices at the pump have been on the rise recently. While still at levels not seen since 2009, gas prices in February have surged at the fastest pace in at least a decade to 2-month highs. As SMRA notes, shutdowns at some refineries due to strikes has been a good part of the reason for the gain in recent weeks, but prices for gasoline also typically start to rise with the approach of spring as refineries prepare to change over to less polluting formations for the summer months. We assume, in some incredible way, higher gas prices are also a positive for the US economy (just as lower gas prices were... not).
This is the biggest surge in prices (around 14%) in February for at least a decade...
Notice also above the seasonality of gas prices.
Of course - levels remain notably 'low' relative to the last few years...
SMRA provides some further color...
In spite of still low prices for crude oil, the cost of gasoline prices has reversed in the past four weeks, ending a generally downward trend that began in early July and extended through January. From a near-term peak of $3.704 per gallon for regular gasoline in the June 30 week in the EIA data, the price plunged over $1.60 to $2.044 in the January 26 week. The price has now retraced 28.8 cents of that to $2.332 in the February 23 week.
Still, even at current levels, consumers have not seen prices like this since the summer of 2009 in the depths of the recession when low demand for oil helped reduce costs for gasoline.
Shutdowns at some refineries due to strikes has been a good part of the reason for the gain in recent weeks, but prices for gasoline also typically start to rise with the approach of spring as refineries prepare to change over to less polluting formations for the summer months.
Consumers may be a little disappointed at losing a bit of the discretionary income freed up by the substantial decline in gas prices, but on the whole the pinch should be small. Fro now, prices more affordable than any time since 2010.
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We gassed some folks.
Big profits for Exxon, buy the oil cheap and sell the refined shit sky high.
Gummint still makes more money than the actual producers, off a gallon of gas.
surprised ?
But not as high as AR ammo.
You mean you weren't stocking up all last year?
I've got .45's out the ass.
.30 Carbine is not as plentiful, but I could probably supply an Army platoon, or ten Marine platoons. Semper Fi.
100 year supply of .22 rabbit rounds.
Wife just stated "sounds like someone is out there."
I said, "Neighbor kid or FBI."
Her, "What do you mean?!"
Me: "Neighbor kid."
Her: "You're so stupid, it's not funny!"
so don't buy that 855 bullshit. 193 is still cheap.
silly me, when i saw oil prices tank i assumed there would be refinery fires, not strikes. shit happens. mere coincidence i'm sure. /s
search key words: refinery fire 2009
There is public transportation in this country.
The secondary market for all electric cars is quite low I hear.
Yet if all I need is ten miles to drive every so often...I will never to your "gas station" again.
EVER.
You mean that little squiggle at the bottom there? Is that called a trend these days? Pffftttt... Fail.
Naturally. The Fed only lowered inflation last year for the sake of Obama and his party in an election year. Those prices had to go back up, because the spending in Washington doesn't end. All this baloney about the Saudis manipulating prices or the bottom falling out of gas prices because a bubble had burst. Now we can rest easy that oil companies will enjoy the influx once again of higher prices, while we at the pump take the hit.
Dead-cat bounce. When the refinery workers see their brothers from oil companies laid off and unable to find jobs, they will quickly get back to work and pump out more gasoline than ever.
Gas was $2.15 in October, oil at $70ish.
Gas is $2.39 now, oil at $50
Makes perfect sense right?
thanks, obama.
/s
Municipal tax receipts are tied to gas prices. Can't let'em fall.
Fuel taxes are per gallon. It doesn't matter the price.
You are correct. I'm going to downvote myself embarrassingly.
Sales taxes however, are per $...at least in Californica
All I can say is that our manufacturing and mining is breathing a big sigh of relief.
Monday/Tuesday is our budget meeting. One of the toughest things we do is what factor should we use as the fuel inflator. The last three years I've been dead on, but this year I'm kind of lost.
I expect it will remain low for a while, then shoot up, after all the floating oil is consumed and the shale rigs are closed. The question is when.
Just readjust, seasonally adjust, throw in some gov/corp hokus pokus, and then you will be retroactively spot on.
Just the refineries deciding if the oil producers are not going to price gouge the hell out of everyone then they will.