Average Gasoline Price Jumps To Highest In 5 Months

Tyler Durden's picture

Stocks are not the only thing enjoying the ECB's $800 billion balance sheet expansion (and just announced additional Bank of England Quantiative Easing) over the past 6 months. Lately a new and unwelcome visitor has also figured out the Euroean Central Bank's sneaky motives. No, not Germany, they still are hopelessly confused and still believe the ECB is not "printing" money. Nor gold. It did long ago, just as Roubini was calling for an imminent crash following the 200 DMA breach - it is headed over $2000 in short order.  No, this time it is that last entrant to any reliqufication party, who just happens to be the guaranteed party-pooper: gasoline.

As the weekly Lundberg survey shows, in the week ended February  10, gas rose by 11.57 cents to $3.5101, the highest since September. The latest price is also 12% higher compared to a year earlier. What is troubling is that as the attached chart shows, the trend of gradual gas price declines has now firmly ended, having touched a low of $3.20,  and has been replaced by a steady climb over the past 2 months. In other words, the US consumer's retail spending has been far weaker than expected in November and December, and soon to be discovered in January, primarily due to gas purchases, which have already plunged as discussed recently, once again taking up a substantial portion of the discretionary spending basket (on credit at that). And what is worse, is that as the LTRO #2 is about to add another several hundred billion to the ECB's balance sheet, which will ineivtably be followed by more Fed printing, the Gasoline trendline has only one way to go. Expect the recent highs of $4.00/gallon to be taken out shortly, and to lead to yet another GDP roll over once again. Alas, none of this will be a consolation to European readers, who a few days ago just saw gas hit all time highs.

Finally, we don't have to remind our regulars, that as David Rosenberg has been warning, the biggest "benefit" to the economy in H2 2011 was the consistently declining gas price. Now that that is over, and prices are once again increasing, one can kiss that particular one-time stimulus to the economy goodbye. Unless of course that long overdue transitory deflationary collapse takes place promptly.

Here is Reuters with more:

The average price for a gallon of gasoline in the United States rose nearly 12 cents in the past three weeks to about $3.51, due in part to higher prices for North Sea crude oil, according to the nationwide Lundberg Survey.


The national average for a gallon of regular gasoline rose 11.57 cents to $3.5101 as of Feb. 10, the survey of about 2,500 gasoline stations in the continental United States found.


That was a greater change than the 3.5-cent rise in the previous survey, which covered the two weeks that ended Jan. 20.


Survey editor Trilby Lundberg told Reuters that the higher prices came as the price for North Sea Brent crude rose more than $7 per barrel. Brent prices are more volatile and sensitive to changes in the Middle East than is U.S. crude.


Lundberg said U.S. pump prices will likely rise a few more cents in the short-term because retailers have yet to pass along all of the recent wholesale price increases.


Among cities covered by the survey, the lowest average price was in Denver at $3.01 per gallon. The price was highest in Long Island suburbs of New York, at $3.82. The price difference is largely because of taxes, Lundberg said.

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BORT's picture

$.30 per gallon on 8,000,000 BBls a day is $36 Billion a year in unofficial tax.  Oil companies ands banks win.  Citizens, not so much

PolishHammer's picture

$9 a gallon in Europe and nobody's complaining.

The4thStooge's picture

Cars are encased in solid ice in Europe. They have other things to complain about.

earleflorida's picture

trains, sub , and planes

oh yeah, forgot to mention the good ole consumer friendly USofA

Ref: "Drilling the Big GOP Lie: The US Exports More Gasoline Than It Imports"

ray medeiros  1/12/12 @ Politicususa



FeralSerf's picture

Maybe the North Atlantic Oscillator is shutting down. That should, at least, improve Natgas demand.

Sudden Debt's picture

Actually I am! I'm already paying 750$ a month to fill up my car just so I can go to work!

Over here I hear a lot of people calling the 2 euro per liter the limit they want to pay for gas and after that they'll start looking for alternatives for their car.

scatterbrains's picture

What's a highjacked tanker truck of gasoline worth over here in the states when the pump price gets to $8 a gallon?


Omen IV's picture

not if a banker hyjacks the truck then its a get out of jail card free

GMadScientist's picture

I would pay good money to watch a banker try to drive a Class A rig.

Keep the extinguishers handy...or don't.

krispkritter's picture

Shit...we had guys in 2008 parking vans over the access ports for gas tanks at 7 Elevens, pulling covers, dropping hoses into the tanks and pumping out fuel.  Estimates were 500 gallons plus per load...none of that ole'timey siphoning stuff...

HungrySeagull's picture

That truck will not get far, nor you. I am someone who has driven them and know.

With that said, Never mind that gas truck, mind how much your station has on hand. There should be a digital gauge on one corner or wall that has a large number on it. If that number is smaller than 4 digits, you wont want the water with the gas you are about to buy.

So what if it did get to 9? Make it 18 or 26 a gallon and then we will see who lives and who dies trying to get gas or sees a shanked gas tank on way to work requiring a 3000 dollar complete replacement of the fuel tank, pump and system.

Deseil? Don't worry, the nation will ensure the trucks roll, just dont trust walmart to have stock in the super centers.

As far as Rail, the juicers in Europe can stuff it, Steam is where it's at.

One other thing We dont pay 1000 dollars a month commuting far away on a shit job with benies. We stay within walking distance and maybe pay 60 dollars if that once a month for gasoline.

css1971's picture

I'm already paying 750$ a month

Many thanks. You are contributing handsomely to my retirement fund.


Sudden Debt's picture

My accountant is taking care so thats not the case :)

NumNutt's picture

Work!?! Wow you have a job?....lucky bastard.....

StychoKiller's picture

There's these nifty inventions called motorcycles, get you one (at least for the summer months...)

Snidley Whipsnae's picture

Honda Trail 110cc motorbike... on/off road... 85mpg average. Only for local riding cause top speed is 50 mph.

Last imported into US in 1986 but still being built and imported to many countries including Australia where it is called the Postie. Most local mail delivery in Australia is made with Posties.

In Florida and other warm climate states I'm seeing lots of small motor scooters and motorcycles being used as daily commuters and shopping trips to the grocery stores.

Caution: the 49cc motor scooters don't have enough acceleration to keep up with most traffic on urban streets. 400cc is enough for most interstate highway traffic. Choose according to your needs and ride carefully/defensively. 150cc is plenty for urban commuting/shopping.

Stick with a good name brand like Honda, Yamaha, Kawasaki, Suzuki, etc, and you will probably have a good and reliable bike... if maintained properly.


rajonmestra's picture

me too! and i have just bought my car a new high quality gas tank and spent all my money on other parts. only to find out that oil prices have increased again :((


Global Hunter's picture

do you have proof that nobody is complaining, any studies or evidence?  

rosex229's picture

Haha yes because the economies of Europe are in tip top shape.

Archon7's picture

The price of gas affects the price of everything.  Everything we do requires energy, and energy doesn't just grow on trees.  Increasing gas prices will be followed by higher energy prices, higher food prices, higher clothing prices, higher, higher, higher.... and indirectly could even affect things like unemployment if companies can't afford the energy they need to operate. 

Bansters-in-my- feces's picture

Sounds like Europeans are not "too bright" then.

Sorta like a PolishHammer.

ekm's picture

As far as I remember from reading stuff in 2008, it takes 45 to 60 days from the crude sold in the market to reach the pump.

Do the math.

HelluvaEngineer's picture

Americans deserve $9/gallon gas.  Fuck all you old suburban professionals driving to Costco in your H2s.

Id fight Gandhi's picture

They stopped making H2s after GM went bankrupt and nationalized.

People dumb enough to buy them were getting really a cheap GM full size truck with plastic cladding. It was no way near the toughness of the military derived H1

HelluvaEngineer's picture

It's a Suburban, shortened, for soccer dads with tiny dicks.

Clueless Economist's picture

yeah but it is a shame those little dicks are able to procreate little fucking asshole soccer playing kids

Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Ah, a eugenicist amongst us.  Geez!

HungrySeagull's picture

I would buy one of those 3500 heavy tow packages first before a H2 or H3 aka plastic box.

I loved the original hummer both military and civilian. I think we left tens of thousands of those things to Iraq as a gift.

Be easier to produce something else now instead of overhauling all those worn out fliptops.

GMadScientist's picture

Budget cutbacks are a bitch.

Tuco Benedicto Pacifico Juan Maria Ramirez's picture

You would have loved 1930s Germany, freedom taker that you are.  You "are" a ramblin "wreck".  That's for sure!

The Watchman's picture

Suburbans rock. I've been averaging 14.1 MPG. Holds 30 gallons. Will go 400 miles on a tank of gas and even with gas at $3.50 a gallon it still only costs me around 100 bucks to fill it up. Leather seats - DVD player - Bose stereo system - 20 inch Aluminum wheels - 4 wheel drive - 350 HP - hauls my boat, woman and children in style. Us 'mericans love us some big azz trucks.

scatterbrains's picture

once shit get ugly a good crook could jack your shit up on blocks and be gone with the catalytic converter / scrap aluminum rims / and $100 dollars worth of fuel after punching a whole in the tank, and all in about 10 minutes.. score maybe $400 in 10 minutes.. and it wont be crack heads it will be your starving neighbor who knows your schedule lol

oh and don't bother calling the cops.. unless there was a murder, their budget forced them to cut to the bare bone and what's left is standing perimeter watch around the municipal building.

NoClueSneaker's picture

Hmmm, observing an interesting asset class ....

Mules long ?



10mm's picture

There will not be a need to call the cops,just like in the present.They always show up with crime tape and chalk AFTER the fact.Over rated.

HungrySeagull's picture

In some cases around the USA that act of crime would not warrant a police response.

I think there is about 50 small crimes for which police wont come out.

We could care less about the converters. We are still a straight pipe state without required inspections so far.

Thank. God.

Deepskyy's picture

When the shit hits the fan I'll be sure to wave at all you communist hippie prius driving cocksuckers sitting in gridlock fleeing the cities whilst I drive past you in 4lo on the shoulder getting all of 11mpg in my YJ.

HungrySeagull's picture

Be far better to be already living two hours from the city and not hear too much out here in the countryside.

I think someone from Bosnia who had a farm during the war in the 80's wrote about how they finally came for him, his lands and families toting Military Battle rifles.

kaiserhoff's picture

So with everyone in recession/depression where is the demand coming from?

Something doesn't add up.

Poor Grogman's picture

Molotov cocktails aren't cheap these days you know.

Sudden Debt's picture

1,7 euro for the content and 20 cents for the glass bottle of raki that could have been recylced.

Poor Grogman's picture

They make it up on volume...

CrashisOptimistic's picture

There are several things in play:

1) The measures of retail oil/gasoline delivery are not comprehensive measures of consumption.

2) As oil scarcity tightens its vice, you get the smash of population increase with no GDP growth.  This can ramp oil consumption even in recession.

3) Japan's tsunami and shut down of nukes yielded a) an influx of 1 mile/gallon bulldozers and 2) a huge demand for honda gasoline powered generators

4) China is buying 26 million cars a year.  There are no clunkers going off the back end of age.  All 26 million is new oil consumption, relentlessly increasing.

HungrySeagull's picture

Honda makes shit generators.

Its Generac or CAT for here in the USA. Kohler makes decent engines too.

8 gallons, half load (8kw or so) good for 12 hours more or less.

GMadScientist's picture

Perhaps you might look at your assumptions. The under-employed still need to get to their shittier jobs.

Sure glad I only fill up once every two months.

toadold's picture

The vicious circle. Prices of diesel and gasoline drive the price of everything up. Mr. B lives in area D and drives to area C to get to his job, but the rising price of gas is driving Mr. B over his budget. He tries mass transportation and finds it is taking him about three hours a day to get back and forth to work, that is if everything goes right. So he take a lower paying job or jobs closer to where he lives. His total revenue has decreased but his disposable income is closer to where it was.  Of course his drop in income also means he is paying less in the way of taxes.  So of course the Administration and the local elites look around for something to tax him on.......Sales of guns and ammo continue to be good. 

dark pools of soros's picture

make it $8 a gallon and get rid of some traffic

HelluvaEngineer's picture

Get rid of the dumb bitches in SUVs, and I'll gladly ride to work on a 500cc motorcycle.