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...
[4]
Brent priced in EUR is back up at 2008 highs and has surged 30% since mid-June - within EUR5 of all-time record highs...
[5]
and European retail 'petrol' prices [6] per liter are well above 2008 highs and back near record highs...
[7]
and compared to US per gallon prices are pushing higher...
[8]
Charts: Bloomberg