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

Scientists take a step closer to ETERNAL LIFE as they PRESERVE and REVIVE brain

Obama protects (destroys) 1.8 million acres of California desert

The Only Thing You Need to Know About John Kasich

Physicists detect gravitational wave forseen by Einstein

Archaeologists Discover Remains of Egyptian Army From the Biblical Exodus in Red Sea

LSU Football could fall victim to State Budget axe

Happy Gilmore drops out of GOP presidential race

Machete-Wielding Muslim Man Attacks Israeli-Christian’s Ohio Restaurant, Several Wounded

Feds Seek Home Visits, Calling Parents "Equal Partners"

‘Let Us Inspect Your Home For Dirty Dishes – Or We’ll Get A Warrant,’ City Says

Drug Dogs Don't Even Have To Be Right Half The Time To Be Considered 'Reliable' By The Courts

Congressman Vapes For Freedom On House Floor

Chelsea Clinton Should Not Support Murdering Babies. Shame On You Chelsea

Will CRSPR save us from NIKA?

Obama has nearly killed the American Dream. No wonder voters are turning to fantasy politics

Friday Music Thread

Carrier to relocate Indianapolis manufacturing operations to Mexico, 1,400 jobs affected

Cruz Knocks Trump as Non-Conservative, Trump Admits It

So now, you'll pay the bank to allow them to keep your money

DARPA Plans to Launch 132-Foot Unmanned Warship in April

Surprise: Trump goes positive, yanks ad attacking Cruz in South Carolina

Halt called in Syria

Worker who pulled gun to stop stabbing attack at GM Tech Center says he was fired

Harry Reid on Dem Superdelgate System: Wrong to Rely on High White Populations of Iowa, New Hampshire

Car theft ends in beating of teen suspect; photos of boy spark debate

Notes After New Hampshire

New Jersey Man Slays Child–The Christie/Rubio Debate Takedown

America Trumped

The libertarian case for Kasich

The Disturbing Evolution of SWAT Teams in American Cinema

NYPD Cop Who Retired With Knee Injury, $66G Pension Regularly Runs Triathlons

EPA Rule To Ban Car Modification

Warning: The dirty tricks are about to start [in South Carolina]

'7,000 retweets and I'll smash this b****'s computer': Outrage at student who publicly threatened classmate over Trump sticker

Reagan’s populist lessons for tea-partyers

Is Cruz the frontrunner now?

Group Therapy Session at the Institute for the Politically Insane

Trump Baja venture leaves buyers high and dry

Not a Dime’s Worth of Difference

Cliven Bundy arrested (Portland Airport - PDX) by FBI, jailed in Multnomah County

Oregon Standoff Heats Up

80,000 Ineligible ACA Enrollees Cost Minnesota Millions [also AR/NE/NY/OH/IL/PA/MA fraud]

and now to more important things

New Trump ad on Ted Cruz "What kind of man" released in South Carolina

Carly Fiorina: I suspend my candidacy today

Houston Couple Forced Nanny Into ‘Slavery’

TSA: Thousands Of Illegal Aviation Workers (73 Of Them “Terrorism-Related”) Make For A “Total Security Abyss”

Bloomberg vs. Trump? “Run, Mike, Run!”

Montana Judge Refuses To Convict Anyone of Marijuana Possession

Creepy Business – Ted Cruz Father: My Son “Annointed” To “Take Control of Society”..


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: 1171
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