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

60+ rallies nationwide demand Congress defund Planned Parenthood: two babies saved

Ralph Nader Blasts Huffington Post’s “Censorship” of Trump Political News

Off-Duty Cop Caught on Private Dashcam Threatening to “Blow a Hole” in Driver’s “F**king Head” During Stop

GOP congressman launches bid to oust John Boehner as House speaker

Legalized Gov’t Theft of YOUR Property: “Prosecutor Lives in Seized House Rent-Free for Years”

Names of Planned Parenthood employees leaked following cyber attack

Oklahoma court: Ten Commandments monument at Capitol must go

North Charleston woman in ICU after husband’s dog tears off her arm

Mitch McConnell, John Cornyn Push Through Voice Vote to Fund Planned Parenthood, Protect Obama’s Iran Deal

An Arizona Reader Notes A Car Crash Fraud Ring Whose Names “Read Like A Oaxaca Phone Book”

Finnish Politician Openly Opposes Multiculturalism, Gov’t Goes Nuts

How the Nordic Far-Right Has Stolen the Left’s Ground on Welfare

BREAKING: Shock Planned Parenthood video catches vice president selling aborted baby parts

Will GOP Establishment Elect Donald Trump—Or Bernie Sanders, Vermont’s Surrendering Socialist?

NEW CALIFORNIA: MASS IMMIGRATION TURNING VIRGINIA BLUE

New Legislation Would Place Breathalyzers in All New Cars

Pat Buchanan: Could Trump Actually WIN?

Boy Scouts of America Officially Ends Ban on Gay Leaders

Can Sound Explain a 350-Year-Old Clock Mystery?

Bush, Walker, Paul in, Trump out of Voters First forum (The Donald bows out of NH debate)

Ohio Cops Hunt 70 Juveniles In Late Night "Mob And Rob" Of Circle K Store

Just When You Thought Fox Couldn’t Get Any Worse…

Donald Trump and the Fed-Up Crowd

Video: Chinese woman gets sucked inside escalator, dies saving 2-year-old son

1970s Coca Cola Commercial - "It's the Real Thing!" (sang by 'The Fortunes')

Witnesses say Confederate flag incited SB shooting

Forget Trump and Bernie: Here’s Why Clinton or Bush Will Be the Next President

The Surprisingly Strong Progressive Case For Donald Trump

Musk, Wozniak and Hawking urge ban on warfare AI and autonomous weapons

Police probe decapitation of Arizona woman and her dogs

Kathleen Willey Launches Anti-Xlinton Website

Scott Walker endorses Rubiocare: “I don’t know that we need ANY” border security

They’re All Government Motors Now

Army Ranger who shot dead NFL hero Pat Tillman in friendly fire reveals the guilt he still suffers and how PTSD from the accident ruined his career, marriage and health

Morton Downey Jr - Atheists

Kurdistan Army: Obama's villains besides the Kurds are: unborn babies, Christians, Patriots, anyone participating in the democratic process

STUNNING=> Obama Gives Turkey Green Light to Bomb Former US Soldiers Fighting ISIS

Jihadi John flees ISIS in fear of his own life

Trump Leads in New Zogby Poll

Cruz: McConnell Blocked Amendments for Kate’s Law, Defunding Planned Parenthood

Donald Trump Speaks His Mind Because He Does Not Have Handlers

Trump Will Win The Black Vote Lets stump for Donald Trump: he is the only one that will secure that damn border

The Ultimate Weekend Musick Thread

Speaking of Environmental Impact:: Anyone monitor their source of water?

“The Civil War never ended”: Jesse Jackson on the racist agenda that must come down with the Confederate flag

30 Reasons Why Saying “Don’t Want to Get Hurt By Cops? Don’t Break the Law” is an EPIC FAIL

Cops Go ‘Undercover’ as Homeless People in Elaborate Scheme to Separate You from Your Money

Poll: Donald Trump Leads GOP Field By Double Digits. Double the Support for Jeb Bush

Looks Like Biden's Running

So we’re apparently at war with Canada. Who knew? [Maine lobster war]


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: 939
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