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The Last Time Gas Prices Rose This Fast, The US Entered Recession
From February through May, gas prices have historically tended to rise. However, between refinery strikes and shutdowns (and blend transitions), 2015 has seen gas prices rise from the start of February at the fastest pace on record. Despite the total lack of 'surge in consumer spending' from the low gas prices that we were promised, the velocity of this price rise is eerily reminiscent of the 2007 surge that, within months, saw the US in recession...
Fastest rise in gas prices on record...
And the last time prices rose nearly as fast as this... ended in recession...
Of course it's different this time - and prices are low - but that didn't stop the drag last time.
Charts: Bloomberg
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Worst gas price hike since lehman? Drink!
Zero Hedge healine generator:
Last time (insert random event here) happened the (stock market, economy, and / or inflation rate) (crashed, soared and / or crashed)
According to that chart, the last time gas prices rose this fast we emerged from recession.
Get ready to make a chart of it going back down.
Dead cat bounce due to the change over to summer blend (refrineries are down during the change over), short labor strife, trains of oil crashing, etc.
It's all over now boys! Refrineries are back up, labor strife vanished, Bershire Hathaway Trains are moving oil again!
Just noticed a big drop in wholesale prices here in Cali. Socal will see changes as fast as today! Going to drop as fast as it went up.
"Fuel producers in California, facing plant outages and upsets that are squeezing supplies, are looking as far off as Asia and eastern Canada for reinforcements.
A tanker carrying refined products such as gasoline, diesel and jet fuel was bound for Los Angeles on Wednesday after loading at the Point Tupper terminal in Nova Scotia, shipping data compiled by Bloomberg show. At least seven other fuel tankers were headed to the U.S. West Coast after leaving Asia, the data show.
Tankers are bound for California after a spate of refinery shutdowns that propelled the premium for the state’s special blend of gasoline to a seasonal record. Pump prices surged by the most ever, making California home to the most expensive fuel in the U.S.
“Due to U.S. refinery outages, Korea has had export opportunities of Carbob to the U.S. West Coast,” Harry Tchilinguirian, BNP Paribas SA’s London-based head of commodity markets strategy, said in a research note on Wednesday.
An explosion at Exxon Mobil Corp.’s Torrance refinery near Los Angeles and the shutdown of Tesoro Corp.’s Golden Eagle refinery near Martinez in Northern California have both “created arbitrage opportunities” on the West Coast, New York-based Poten & Partners Inc. said in a report March 6."
http://fuelfix.com/blog/2015/03/12/fuel-thirsty-california-looks-to-east...
Stop helping them, you morons. How are they ever going to learn?
Agreed. 0 H is getting ahead of itself. The Exxon refinery explosion was the cause of the $1.00 rally in California and the recent rumblings that the Govt might replace some of the SPR crude with products is the other reason.
Less hype more facts. Gasoline prices are heading back down.
So they're running out of tanks to store all of the excess oil, but gas prices are shooting up. Got it.
Basically this is why. The refineries have not been processing the crude fast enough which leaves a shortage of refined product. As soon as the refineries ramp up, the refined product shortage will drop as crude is drawn down to produce gasoline and the prices at the pump will fall back in line with the price of oil.
OT: I meet the requirements to file for disability. I haven't worked since October and have been eating up my savings. I'm torn about what to do. The money would be nice, but I don't want to live as a leech. Then again, I've paid over a million dollars in federal taxes over my working life (including income tax), so I could justify it by saying I'm getting some of my own money back. Somehow that feels like a flimsy justification. Then again, isn't it my civic duty to drain the beast as much as possible? Maybe.
What would you do?
If you need the money, take it. Its insurance. I'm against people faking disability, not taking it when they need it.
Keep the savings if you can. You'll need it.
You seem like a smart guy. You know what to do. Plus it will take over 2 years before you are approved. SSDI May be busted by then.
I personally don't think anyone should have a moral or ideological resistance to collecting benefits you paid for in taxes. However, if you've paid over a million dollars in federal taxes over your working life, that means you've earned many millions. Assuming you saved some of it, and given that you can type this question, I would think you have the means to earn income in some fashion that would make you ineligible for disability.
There is a double standard in benefits .... if you're the wrong color .... you have your work cut out for you .... take the money .... if they give it !
Been here done this since may good luck filing i did in december and have heard nothing so As much as I feel you and am looking for a job to suppliment my savings that I can actually do . See my neck keeps me from passing a physical for many jobs and well looks like accepting a job at At&t will do 35,000 year and to think I sold health insurance 29 years highest income in 2007 at 240,000 so many taxes pd. good luck my friend. Obumer wants us fucked like his flks my question is who will pay the taxes we used to????????? Ugggggggg
Go for it, all they can say is no.
Take the money. We need to bankrupt the system sooner rather than later.
Oil was $147 a barrell then...
Gas price hike = impending recession .... girls hike up their skirts = impending depression !
The peep already know gas is a commodity priced at a level that the market will bear until it pukes it up.
See crude is now below 47 !!! But I Haven't seen the gas pumps drop even 1¢ in the last 3 weeks.
HEy that would be deflationary (and cut into somebody's fat margin too).
Same shit in The Netherlands. Diesel and what we call benzine is not cheap as it should be. Taxes..........
Yep I am a bear. But if I read one more ZH headline that states: "last time (__________fill-in-the-blank____________) happened, a global recession followed..." I am going to nail gun myself in the head.
About those EIA estimates. Real reliable.
http://peakoilbarrel.com/eia-confusion
It all makes perfect sense until it doesn't.
Looks like a correction to an overshoot to the downside to me. When oil price resumes it's decline, gas prices will follow.
Leave Tyler alone.
On a day he couldn't use the words, 'down,crashed, plunged, evaporated, monkey-hammered, crushed,banged, closed on the lows, torpedoed, sunk', while referring to the US equity market he's going to be grumpy.
Fucking gas prices. The last time we went into "recession" the FED (oligarchy) pumped 5 trillion dollars into their collective pockets. Next up 10 trillion, and you're not getting any. Its their money backed by the US army. Now fuck off and die.
No worries. We can't re-enter something we never left
Ooops. Sorry. Forgot.
Let me keep to the script
We're riding the wave of "The Great Recovery"
Thank you King O
Here is how to prepare yourself.
http://michaelekelley.com/2014/10/16/8-things-to-do-when-recession-happens/
So long as the govt is able to define what a recession is, you can rest assured that we will never experience one ever again. After all, it has worked wonders for keeping unemployment, the national debt, and inflation under complete control. Does this mean that if I come up with my own definition of what the terms "overdraft", "past due", and "insufficient funds" mean that everything in my life will be greatly improved?
The economics of superstion.
Gas has droped $0.20 a gallon in central Illinois this week. Around $2.20 for 87 oct.