Be Careful What QE You Wish For #2467: Gas Prices Surging Again

Tyler Durden's picture

After a drop of more than 20% from late April to mid June in wholesale gasoline prices which was heralded as the great savior of a slowing global economy - all those implicit tax cuts... the hopes and dreams of the next great unsterilized money-printing has not only floated equity asset valuations to near multi-year highs but energy prices across Europe and the US are soaring once again. This 'transitory' 25% surge in wholesale gasoline prices in the US in the last two months - now back above $3/gallon implies (given the lag in transmission) that retail gas prices (which historically peak around July 4th) are set to rise notably above last year's summer peak - back up near record highs and eating into that ever so happy to spend consumer's pocketbook once again. Meanwhile, Europeans are seeing near-record highs in retail gas prices once again and Brent priced in EUR (which remember is what they 'care' about) is now back above 2008 highs and within a few euros of all-time record highs - up almost 30% since Mid-June. Deflationary? Recessionary?

US Crude, Wholesale Gasoline, and Retail Gas Prices are charging higher...

 

Brent priced in EUR is back up at 2008 highs and has surged 30% since mid-June - within EUR5 of all-time record highs...

 

and European retail 'petrol' prices  per liter are well above 2008 highs and back near record highs...

 

and compared to US per gallon prices are pushing higher...

 

Charts: Bloomberg