[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Mail]  [Sign-in]  [Setup]  [Help]  [Register] 

Rep. McCaul: Yes, we will build a wall, put Mexico on a “payment plan” and enforce the law

Think Obama’s Gone? Think Again — Ex-Pres Considering Career in Digital Propaganda

Innocent 59-year-old Mother Assaulted by Cops in Walmart for No Reason

Marijuana Victims' Association: Is Marijuana the New Thalidomide

Donald Trump Is a Greater Threat to Free Speech Than the Campus Left

How to construct a ventilated pit latrine

The most bourgeois sight imaginable': Philadelphia attorney is caught spray-painting 'F*** Trump' graffiti while wearing a blazer, chinos and swilling a glass of wine

Former Special Forces officer: Gen. ‘Mad Dog’ Mattis left ‘my men to die’

U.S. ‘News’ Media & Intel Agencies Blame Moscow for Trump’s Election

Congress Approves Measure for Crusade Against “Fake News” — Using DoD Funding

Former Cop Tries Cannabis as Last Resort to Treat Parkinson’s Disease

GOOD: Michigan Border Patrol Is Getting Sued for Ridiculously Claiming Entire State Is “Constitution-Free Zone”

Sarah Palin: Trump's Carrier deal is 'crony capitalism'

Buyers Remorse – Trump Supporter Was Foreclosed on by Treasury Pick Steve Mnuchin

Bill Targeting “Russian Propaganda” Passes in House

A 6 Step Plan for Trump to Make Our Money Great Again

The USS Zumwalt: Ahoy! Can You Call Us a Tow Boat?

6 million Americans have stopped paying their car loans, and it's becoming a 'significant concern'

Dollar General misses profit and sales forecasts

GOA comes out against Petraeus for SoS (co-found the Veterans Coalition for Common Sense)

I still love looking at videos of these leftards crying over Trump winning.

The Best From ‘Mad Dog Mattis’

"Mad Dog" to be Sec. of Defense, ISIS is history

WHERE’S THEIR HUMANITY?! Anti-Trump Protesters Laughing, Wishing Trump Supporters’ Houses Would Burn Down In Gatlinburg Is Deplorable

(Bush Homeland Security Secretary) Michael Chertoff: OSU Terror Attack No Reason to Keep Out 'Refugees'

FDA OKs Clinical Trials of Ecstasy for PTSD

Steve Bannon Says Joining Goldman Sachs Is Like ‘Joining The Jesuits’

U.S. Congresswoman & Military Vet to Join the Resistance With Fellow Veterans at Standing Rock Read more at

Former NIST Employee Speaks Out, Says Building 7 Investigation Bogus, Government ‘Denied Evidence’

Trump staffer found guilty of 10 counts of election fraud

Canadian cops to punish drunk drivers with Nickelback tunes

“War On Truth Against Those Who Challenge Their Lies”

Is Flag Burning Protected Speech?

Donald Trump Made THREE Appointments Today, Here's What His FULL Team Looks Like So Far

California Mom Sherri Papini Had 'Message' Burned Onto Skin by a 'Very Sick Person,' Sheriff Says

Carrier Employee To Trump And Pence: Thank You For Sticking To Your Word And Going To Bat For Us

Milwaukee’s Biggest Paper BLASTS Jill Stein And Hillary Clinton Over Recount in Scathing Editorial

GOP rep: 'No president is allowed to burn the First Amendment’

Coverup? How Did One of the OSU Terror Attack Victims Get Shot by an Attacker Armed Only with a Knife?

Dead Pole went from morgue back to pub

Turkey Has Declared War On Syria – Does This Mean That World War 3 Is About To Erupt In The Middle East?

Disorder in the House

President-Elect Donald J. Trump Intends to Nominate Congressman Tom Price as Secretary of Health and Human Services and Seema Verma as Administrator of the Centers for Medicare and Medicaid Services

AMERICA GREAT AGAIN Trump to Announce Carrier Plant Will Keep Jobs in U.S.

Trump picks Elaine Chao for transportation secretary (MItch McConnel's wife, 2X Bush insider)

Council on Foreign Relations New PR Video Can’t Undo its NWO One World Government Agenda

fled the USSR.....the Bolsheviks. Now...we are living amongst the Bongsheviks....they are even worse

Jeb Bush Won the Election

Trump Nominates Wife of Mitch McConnell (and CFR Member) as Secretary of Transportation

Populist-Nationalist Tide Rolls On In Europe And The West


Status: Not Logged In; Sign In

Business
See other Business Articles

Title: Why Gasoline Isn't $4 Per Gallon Nationally
Source: Bloomberg
URL Source: http://www.businessweek.com/article ... e-isnt-4-per-gallon-nationally
Published: Apr 11, 2012
Author: Matthew Philips
Post Date: 2012-04-11 10:50:24 by Brian S
Keywords: None
Views: 1249
Comments: 2

The recent surge in U.S. gasoline prices may be stalling thanks to a growing supply of crude oil and a retreat by speculators in the futures market. After weeks of consecutive increases, the average price of a gallon of gas in the U.S. fell more than a penny this week, from $3.94 on April 2, to $3.93 on April 9. In California, the state with the highest gas prices in the lower 48, prices fell to an average of $4.28 a gallon on April 9, down from $4.35 three weeks ago.

“I think we’re seeing the gas and diesel markets start to run out of steam,” says Ben Brockwell, director of data and pricing at Oil Price Information Service (OPIS), a New Jersey-based energy research firm. Two weeks ago, Brockwell was all but certain the price of gas would hit a national average of $4 a gallon by the end of April. Now he’s not so sure: “There’s a chance this market has peaked and that we won’t see $4 average prices at the pump.”

Gas prices haven’t fallen everywhere, though. They continue to rise along much of the East Coast, particularly in New England, where the average price rose 7¢ last week, from $3.89 to $3.96. A flurry of East Coast refinery shutdowns of late has squeezed supply chains and could continue to add to the price of gasoline this summer, particularly in the Northeast.

The price of gas is determined primarily by the price of oil, which has fallen recently due to questions surrounding the strength of the U.S. recovery, as well as news that Iran will resume talks on its nuclear program. Rising OPEC production and a growing supply of crude in the U.S. have also helped dampen oil prices recently. The U.S. is now producing more than 6 million barrels a day, the most in 12 years. But with demand at its lowest level since the mid-1990s—and overloaded pipeline infrastructure unable to move it to refineries quickly—supplies are building faster than they have in decades.

A Bloomberg survey of energy analysts indicates that U.S. crude supplies climbed to 364.4 million barrels last week, their highest level for early April since 1990. Supplies in Cushing, Okla., where the price of West Texas Intermediate is set, have risen particularly fast—nearly 40 percent this year. The amount of crude stored in Cushing rose to more than 40 million barrels at the end of March, nearing the April 2011 record of 41.8 million barrels, and nearly double the amount stored there just three years ago.

This glut of supplies could be impacting the behavior of oil speculators, who have been pouring billions of dollars into a variety of oil-related futures contracts since October, betting on an Iranian supply disruption and, as a result, helping lift oil prices 30 percent in the last six months. The amount of speculative money in the oil market hit a record high in mid-March, when money managers held a net long exposure to oil through 642,724 futures contracts. At 1,000 barrels per contract, that’s roughly the equivalent of 643 million barrels of oil—more than the entire world uses in a week. But speculators pulled back last week, reducing their net long positions to 576,526 futures contracts. That’s still the seventh-highest weekly total ever, according to Citigroup (C) oil analyst Tim Evans.

“The question is whether that simply reflects end-of-the-quarter profit-taking, or whether it signals a more significant change in market sentiment,” Evans says. “There isn’t enough data to say for sure that the buying spree has run its course. We can’t ever assume they won’t build an even larger position in the future.” (1 image)

Post Comment   Private Reply   Ignore Thread  


TopPage UpFull ThreadPage DownBottom/Latest

Begin Trace Mode for Comment # 2.

#2. To: Brian S (#0)

The Saudis have expressed frustration that oil supplies are quite plentiful yet the price is high, creating a friction in their petrodollar economy with the States.

The problem is, as it has been, oil speculators. It is much cheaper to speculate in oil than in stocks because it takes so little to cover the purchase. The regulations actually encourage oil speculation relative to stock investment.

It appears the Saudis have opened the taps wide to punish the speculators.

tooconservative  posted on  2012-04-11   15:53:46 ET  Reply   Untrace   Trace   Private Reply  


Replies to Comment # 2.

        There are no replies to Comment # 2.


End Trace Mode for Comment # 2.

TopPage UpFull ThreadPage DownBottom/Latest

[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Mail]  [Sign-in]  [Setup]  [Help]  [Register] 

Please report web page problems, questions and comments to webmaster@libertysflame.com