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

Trump OKs DACA Amnesty: ‘This Is a Case of Heart’

US Govt: Arresting WikiLeaks Founder Julian Assange Now a Top “Priority” (Another Trump Flip-Flop)

Conspiracy, The Prosecutor’s Darling

American Airlines investigates after video shows mom in tears

Please, God, Stop Chelsea Clinton from Whatever She Is Doing

Trump – two steps forward, one step back

Meet Eric July (America’s top black Christian anarcho-capitalist rap-metal artist.)

Oklahoman author, Texas dispute ownership of 'lunar Bibles'

Border Lawmakers Balk at Donald Trump’s Wall Request

An 11-Year-Old Is Suing Trump for His Climate Change Skepticism

Thousands of ex-Taliban fighters may have entered Germany: report

O’Reilly’s former show turns out the lights

Trump Plays Budget Hardball in Congress to Build Border Wall

Feminist Who Once Dated Anthony Weiner, Complained Bill O’Reilly ‘Thanked Her For Being Blonde’

Obama’s CIA Director John Brennan CONSPIRED with Foreign Spies AGAINST Donald Trump

West Virginia middle school teacher photographed wearing ‘Tuck Frump’ shirt in class

Trump quasi-endorses Le Pen: "She’s the strongest on what’s been going on in France"

Are Puerto Ricans really American citizens?

April 22 is Earth Day: let's remember the co-founder who killed then composted his girlfriend

The [Election] Suspense Is Almost Too Much for the French

Mr. Wee Wee is ... feeling Obama sized PRIDE--- fOr the Berkley prOtesters!!!

Dad Drops Son a Mile From Home, Goes to Jail.

REPORT: Pence has negotiated Obamacare replacement amendment with Freedom Caucus!

Report: James Murdoch plans to turn Fox News into yet another progressive establishment news outlet

Total Chaos: Cyber Attack Fears As MULTIPLE CITIES HIT With Simultaneous Power Grid Failures: Shockwave Of Delays In San Francisco, Los Angeles, New York

Bill O'Reilly will stick it to Fox and compete. Fox will have some competition.

Talk about paranoia - delusions - grandiose thinking ... this is TDS --- at its finest !

The Oklahoma City Bombing After 22 Years

Operation Gotham Shield: U.S. Gov’t To “Simulate Nuke Blast Over Manhattan” As Actual War Nears (False flag watch is now active.)

Cohasset (Mass) police seize 100 firearms and 5 military-grade shells from Doane St. home

WATCH: Cop Kills Unarmed Navy Vet for Getting Out His ID — Not Charged

WATCH: Cops Raid Innocent Marine Vet’s Home as He Slept, Beat Him in Bed

Court: No Immunity For Federal Agent Who Made Elderly Woman Stand In Urine-Soaked Pants For Two Hours While He Questioned Her (Update on Moon Rock Story)

SHIRE GENIUS Flores Man ‘hobbits’ found in Indonesia were definitely NOT early humans, scientists confirm

EXCLUSIVE: Aaron Hernandez left behind a handwritten suicide note for his gay jailhouse LOVER - who is now on suicide watch - and two more for his fiancee and four-year-old daughter

Oregon Cop's Inability To Keep His Hands Off A Resident's Phone Costs Taxpayers $85,000 In Legal Fees

DHS Boss Calls For More Fear, Less Encryption

Chelsea Clinton Says Americans Were TOO SEXIST to Elect Her Mom

Paris Muslim who killed policeman, shot two others just days before French election was released EARLY from 20-year sentence for trying to kill cops

END OF AN ERA: Murdoch Family Fires Bill O’Reilly – Promotes Bob Beckel and Juan Williams

It’s Time to Stop Pretending North Korea Is a Threat to the United States

New England Patriots Call Out New York Times for “Fake News” Photographs…

Home Again, and Hello Dante

Crosby, Stills, Nash & Young Could Reunite — Because They Hate Trump More Than Each Other

Pat Buchanan: Has Diversity Put Democracy in a Death Spiral?

Interior Department Takes Steps to Make America Great Again

Tension Builds: Vladimir Putin Mobilizes Troops and Equipment To North Korean Border: “Fears U.S. Is Preparing To Attack

Ellen Degeneres deals ... 70 % off --- amazon - 138 deals found

My mid-year predictions

Tempers flare at Supreme Court over religious liberty case


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: 1270
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