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So Much For The Oil Crash: Cali Gas Price Almost Back To Year Ago Levels; Los Angeles Gallon Rises Over $4.00
Back when oil was crashing from $100 to $40, every day various economists and pundits, oblivious of the bloodbath in energy junk bonds and the imminent capex collapse, would explain how plunging gas prices were "unambiguously good" for consumer spending in the US. Well, the oil crash came and went, and retail sales since November have been unambiguously bad, not to mention US GDP in the first half is now poised for a negative print.
But while one could, at least superficially, make the case that for the US consumer (if nobody else) lower oil prices are indeed better than the opposite, we wonder how the same pundits will spin that according to AAA, not only are Los Angeles gas prices now back over $4.00 per gallon, erasing almost all losses from a year ago...
... but that the mecca of US motorists, the entire state of California, has seen its average gas prices soar from a low of $2.55 in January, a 40% discount to the $4.15 price a year ago to just above $3.80, a single-digit decline from May of 2014, and a difference which at this rate will be completely erased in less than two weeks time.
At this rate a gallon of gas may soon cost as much as a gallon of water in California.
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HA HA HA HA HA
$3.00 +/- in western Oregon.
Notice there's no mention of what the CA water crisis will do to real estate values there?
Cam't be good.
The spread between unleaded and diesel is getting narrower.
The 99% getting shafted again while the wholesalers are given a profit break.
It won't save them...
Must be all the record business closings.
That, and 29.5 hr/wk jobs.
Could be a little hot QE cash found it's way there. Who knows?
Cali is already the fuel tax champion and Gov Moonbeam will take this as a sign to jack the tax up some more...for the good of the people don'cha know....
In Tucson gas is around 2.25. We should buy a tanker and bootleg it into S Cal.
How fuel outfits are able to charge 4.00 bucks in one area and 1/2 that price 500 miles east- still boggles the mind. Use this site to find the gas price anywhere.
http://www.gasbuddy.com/
A suppliment to your link.
http://www.api.org/oil-and-natural-gas-overview/industry-economics/fuel-...
Just Google Enron. The irony of course is that Cali was once the world's largest producer of oil by far.
Still does produce a lot now actually.
Clownifornia got Enroned by their own politicians. If they feel they are being screwed over so badly by the oil companies, then they should build their own state-run refineries and see how that goes.
The gas station owners need to amortize the cost of their infrastructure/land. City/urban stations will always have to charge more than stations in the sticks.
Don't expect the market manipulation to stop anytime soon either.
Wait until food prices soar...
California, in all of its tree-hugging, hippy-dippy wisdom, has mandated a different blend of fuel. So the $2.25 fuel in Tuscon can't legally be sold in LA.
The price is $2.24 at CircleK at Valencia/Nogales ...
mhoehahaha
On February 19th there was a refinery fire at the Exxon-Mobil plant in Torrance. A portion of the refinery was consequently off-line. This purportedly has lead to a decline in supply which is the reason for the price run-up. At least thats what we're being told. Here we are three months later, after all.
"don't count on low gas prices forever. Do something useful with the savings, like buy a new car". Obama.
Well now, I hope you got that overpriced, plastic piece of shit paid off already. Oh damn, another 7 years to go.
Of course we wno't be hearing CNBS tell us how gas going up acts like a tax on the CONsumer, instead they will tell us it's a sign of a healthy eCONomy.
Every time there is a recession, banks and oil companies make record profits or so it appears. I remember years ago when interest rates went through the roof to 'fight' inflation causing more inflation as people had to pay through the nose for mortgage, rent payments and jobs were scarce and low paying.
Government is a scam, so is the FED, to keep us in line and suck as much blood as they can from our wallets so they can go to other countries to destroy and put in their own agendas.
Now this must have more to it then we are seeing. I would like for zerohedge to investigate the cause of gasoline prices jumping while crude prices remain depressed. Is this disconnect part of a system unraveling? Low crude and high gas prices make no sense.
It's cynical to suggest that there's gouging going on. The disparity in prices is due to the drought, obviously.
It's Memorial Day weekend.
I am sure there is a refinery down...somewhere.
Tensions in the Mideast.
West Coast summer blend is more expensive.
They just don't care...screw you.
Pick one, pick all.
Every year you hear the same thing. Refiners "caught off guard" by increased driving. Then in the winter the same thing "caught off guard" by cold temps.
It's extra funny now because I bet even in this full steam recovery driving is down.
Diesel is cheaper than gas again. In 2008 it was 22% higher, I think they shake the oracle 8 ball to decide the price relative to gasoline. Clearly they need to throw a new federal tax on at the pump. Diesel relative to gas chart since 04 is completely shizophrenic.
http://www.factcheck.org/2008/05/diesel-fuel-and-gasoline-costs/
It's the demand, stupid. A gallon of diesel contains about 15% more energy than a gallon of gasoline. And diesel cars are much more common than 10 years ago. So why diesel gets cheaper when relative demand is growing? The reason is a big surplus production of diesel fuel, because the demand for trucking and hauling is weak.
^^^^^^ This guy. Saying supply and demand matter.
Pfft.
Many states took the downturn in prices to be sure to stick it to people by raising taxes. Which for many is just starting to take effect, right as it was going to go up anyway. Thanks State lawmakers, we really didn't want to save the money for ourselves and would much rather give it to you.
Mrm2015: I believe that Cali is an outlier. It has a specially formatted gas , as well as a couple of refineries that had fires and were down. That's the cause of the price discrepancy with other states.
However, it is obvious that the wholesalers are fucking us, now, everywhere.
Their time will come.
Gas is around $2.55 in Texas give or take depending on the area.
"Low crude and high gas prices make no sense."
You made an assumption.
You assumed that there are functioning markets for oil and gasoline.
There aren't.
Never have been.
So stop trying to make "sense" of it.
You can't.
Lack of storage availability for all the excess crude puts demand pressure on the gasoline producing refineries, allowing cost of production to rise, this drives gasoline prices up. Stab in the dark.
".... but larry..."
While I give some califonians credit for being innovative, there are innovative people everywhere. In this case the entire southwest (long time high desert) has become a shinning example of just how fast human arrogance and greed can destroy a good thing.
They are fighting with the very laws of Nature and physics that several of them used to make a lot of great advances. Fucking hypocrites, fuck em. Fuck them and the greedy fucks in Jew York that brought the world to this point.
Maybe that land should have been left with Mexico where it belonged and it would have remained under populated instead of becoming a hippy heaven place. Mexicans at least know what it's like to live in the desert. Oh well, it's either the drought or a huge earthquake, either way I'm sure things will change on the west coast in the coming decades!
LOL!!! "remained unpopulated"? What a maroon. Ever been to mexico city? The majority of mexicans are catholic.
Haha ever been to Baja California or Sonora? Compare that to California and you know what I mean! And I think you will see that confession these days no longer equates to population growth or Italy would be the baby craddle of Europe!
Not even sure the Pope is Catholic anymore.
Don't worry. Bears still shit in the woods.
Right, that little clue you offered illustrates that it is the culture that demands breeding, not the religion. Which is why Uncle Fraud has opened up the borders to the breeders, both latin americans and muslims. Uncle Fraud wants the breeders in this country to continue the Ponzi scheme. For Mormons on the other hand, it IS the religion, not the culture. Go forth and multiply and they do - spades.
Ever been to Tijuana?
The Southwest "belonged" to Mexico for about 20-30 years after they stole it from Spain who stole it from the Native tribes. Everytime some ignoramus claims that the Southwest belongs to Mexico, it pretty much disqualifies everything else that comes after.
Regional $gouging.
Been going on for decades. Much like reforming the tax code however, you won't hear boo from the Idiocracy...
Strange how it's always the high tax, nanny states that get gouged. I bet that most of that extra $1.50/gal they're paying is going to the state government.
The real issue is how retailers are able to gouge and pricefix the cost at the pump when oil is still trading at 59 bucks rather than 95.
Yeah, all these little gas station owners are fixing the prices. LMAO!!!
Look to Wall Street and government regulators.
Proof that fundmentals mean nothing. The government was furious with the low gas prices. They need the gas revenue. To the moon Alice...
$2.88 here for 93 in Htown.
FWIW, the state started taking an extra dime a gallon on 1/1/15, so that is part of the price recovery
Baja California gas .... now cheaper than .... Alta California gas !
Am I the only one who double posts anymore ?
The chootz that run things probably cackle with glee at the current gas shearing of california sheep.
The sheep will take their shearing, and ask for more.
"Thank you global energy/monetary monopoly, may have another?"- the sheared.
there is seasonally a rise in prices around memorial day. i notice that diesel is at a discount to gasoline, which hasn't always been the case. and UNG is still very low, which is a boost to muni government, trash haulers and transportation. so you look at the whole thing and there is not much to it, even though crude if off between 40 and 50%, which is why big oil is increasing production. the crack spreads must be crazy
2.45 for regular in the woodlands, that means 2.30-2.35 in Tomball, not counting Kroger points !!!!! What part of the the dirty third you from Free Shitter ?????????
According to analysts, growth in this economy hinges on the couple bucks people save with low gas prices, this could be trouble.
They've been watering the gas down for years, but now water is getting expensive.
North Dakota and Texas have been ruined and Alberta has a socialist government. Mission accomplished. High time to raise gas prices again.
What, you thought proles would get any of the benefits of cheap oil for long?
Indeed, 'the market knows best?'
fact: the CAFEs via EPA have long been a bust throughout the Bush's ME wars! Why?
fast forward 2015: what fucking standards have been compromised http://en.wikipedia.org/wiki/Corporate_Average_Fuel_Economy#Standards_by_model_year_.2C_1978-2011
"Supply and Demand" or "Demand and Supply" doesn't work in a 'Feradally induced comatose'd` broketh marginalize`eth market`teering?!?
This isn't good considering we're in recession.
Jeez I spent all of my huge savings on lower gas prices already to pay for the increase of my grocery bill. Does this mean I will have to pay them back? I am so glad there is no inflation.
I love when I hear there is no inflation on the news. I guess none of those idiots ever buy anything for themselves. Our annual increases at work are tied to the phony CPI (not merit, go figure!) so this year I am counting on a 0% raise. I am so glad that none of my bills of true cost of living have gone up...../sarc.
Yes America, Latino voters are expensive, Americans in CA didn't voted to get raped by the Zionist mob, it just happened
Nothing Air Force One can't solve on Earth Day...or heading up to Philly today no less.
The oil companies have a history of shutting down/blowing up refineries to create a "shortage" to keep the prices high. That's why regular gas is not about $4,00 a gal everywhere you look. I think right about now there is one to two refineries producing product for the entire state. The Richmond refinery exploded several weeks ago and is offline, and several other refineries are down for "scheduled maintenance". And every time they pull this shit, politicos promise they'll look into the situation with some sorta "panel", then we never hear anything more about it. I guess the check's in the mail.
Why is Diesel 20 cents cheaper than 85 Grade gas?
Can't remember the last time, if ever, that has been the case
Because commercial vehicles use more diesel, and without anybody buying/building/selling anything, there's a glut of diesel.