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

New Breaking News Julian ASSANGE speech at the Ecuadorian Embassy !

An Establishment in Panic

Small hack to help with DNS probs (for Linux users only)

Clinton server email at heart of 'quid pro quo' controversy contained Benghazi intel

WIKILEAKS - RE: NYC/Gloria Allred Link

WIKILEAKS: We ask supporters to stop taking down the US internet. You proved your point.

Today's Brutal DDoS Attack Is the Beginning of a Bleak Future

Songs from my band (Avant Garage)

WIKILEAKS: Donna Brazile - "I think people are more in despair about how things are—yes new jobs but they are low wage jobs."

Has anyone else noticed there have been weird things happening on the Internet today

HERO POLICE OFFICER Dashcam video shows Texas officer helping boy who had seizure

Bad Hombres -- Nasty Women

Leaked Emails Prove That A Shadow Gov Rules: Hillary Aims to “Make Soros Happy”

Unrest and Martial Law? Leaked Military Drill Anticipates “No Rule of Law” After Election Results

Air Force Maj. Harold Hering - An Unsung Hero of the Nuclear Age

American Psycho: Sex, Lies and Politics Add Up to a Terrifying Election Season

“Most serious” Linux privilege-escalation bug ever is under active exploit (updated)

The Hawk on Russia Policy? Hillary Clinton, Not Donald Trump

Frank Gaffney: Clinton, Obama Have Given Us ‘Much More Dangerous Kremlin and Putin’

Back to Videos Jill Stein: Trump Is Less Dangerous Than Clinton; She Will Start Nuclear War With Russia

Hillary Clinton: America's Most Dangerous Enemy Within

Pentagon: Hillary Clinton Should Be Arrested For Leaking Top Secret Nuclear Intelligence on National TV

Loose Nukes

Clinton's debate reference to nuclear response rekindles judgement questions

WIKILEAKS: "We have a suprise in store for @TimKaine and @DonnaBrazile"

Maybe I'll get divorced soon

WIKILEAKS: Re: FYI CGI Africa [Huma: She created this mess and she knows it.]

Hillary Clinton Whisper Dozen Ear Piece 3rd Debate

Clinton-Trump III - D.C. v. Heller [RKBA]

Clinton-Trump III - D.C. v. Heller [RKBA]

Project Veritas Proven Right by CNN Video

RE: Tax hit for Chris Hayes

I think Trump just made a mistake in hs speech

Ecuador says it disconnected Julian Assange’s internet because of Clinton email leaks

Politicians Should Try Drugs—and Honesty

General Cartwright is paying the price for Hillary Clinton’s sins

WIKILEAKS - Re: Proposed Final for Infrastructure Memo

On the Debate

WIKILEAKS - Millenials Poll [Voter registration]

WIKILEAKS - She doesn't seem to know what planet we are all living in

CNN cuts satellite feed as soon as WikiLeaks is mentioned by Congressman Collins

The Missing "Oh Shit" Link Revealed: Hillary Admits "I Asked That They Be Deleted"

Judicial Watch: New Emails Show Hillary Clinton Contacts with Bryan Pagliano – Raise New Questions About Her Sworn Testimony

WikiLeaks Show Rothschilds Grooming Clinton for Presidency — Months Before She Launched Candidacy

WikiLeaks’ 10 Most Damning Clinton Emails that Prove Mainstream Media is Scripted & Controlled

WIKILEAKS - Re: Response to Gowdy Comments

Hillary Clinton’s “Sudden Move” Of $1.8 Billion To Qatar Central Bank Stuns Financial World

LOL All The Cable Pre-Dabate Banter

At 90, Chuck Berry back to rock 'n' roll

Cops Have a Database of 117M Faces. You’re Probably in It

Status: Not Logged In; Sign In

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: 1225
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