Alltop, all the top stories
May 15, 2008

Up, Up, and Away!

 

One of our favorite reads, Tom Kloza of Speaking of Oil, is not soft-pedaling the bad news about where gas prices are going. That would be HIGHER by the end of this week.

Those darn “market forces” keep pushing up the price of crude oil, so what do you thing is going to happen?

Consumers and end-users are clearly about to get hit by some of the stiffest increases in 2008 that are only now working their way through the distribution chain. Today’s finishing numbers for gasoline project to retail unleaded quotes of above $3.80 gal by the middle of next weeks, or some 13cts gal or so above current quotes. Retail diesel prices could soon be on the threshold of a $4.50 gal average, well above the record $4.2686 gal average posted today in the OPIS report for AAA (See www.fuelgaugereport.com for details).

Here’s a look at where wholesale prices end this first full week of May that has seen new records established for every single product in the petroleum supply chain. Refined product values represent numbers garnered near the close of business from the real time OPIS Spot Ticker, which tracks actual spot market trading in seven U.S. bulk markets. For more information or a free trial,

visit http://www.opisnet.com/market/spotwci.asp

Venue & Product May 1, 2008 May 9, 2008 Change

——————— ————— —————- ———-

NYMEX Crude $112.52 bbl $125.96 bbl +$13.44 bbl

NYMEX Gasoline $2.8782 gal $3.2012 gal + 32.30cts gal

NYMEX Heating Oil $3.1177 gal $3.6360 gal + 51.83cts gal

Gulf Coast Unleaded $2.7632 gal $3.1187 gal + 35.55cts gal

Gulf Coast Diesel $3.2677 gal $3.7435 gal + 47.58cts gal

Chicago Unleaded $2.8057 gal $3.2012 gal + 39.55cts gal

Chicago Diesel $3.2652 gal $3.7585 gal + 49.33cts gal

Los Angeles Unl $2.9645 gal $3.2187 gal + 25.42cts gal

Los Angeles Diesel $3.3227 gal $3.8110 gal + 48.83cts gal

Filed under:Fuel cost,Fuel Price Trends,Gas price | by Pump Girl @ 5:35 pm | 

Time to Lock Your Gas Cap Again

 

Gas_Caps.jpg Most of us have been worrying about the high cost of putting gas into the tank, but have we forgotten to worry about keeping it in there until our engine needs it?

There are drivers out there tooling around on OPG (Other People’s Gas). All it takes is a hose to transfer fuel from your car to their car. You can make it more difficult by replacing your regular gas cap with a locking gas cap. It only costs $15-$20. Oh, and get the right one for your car model or you’ll be seeing the dreaded “check engine” light.

Don’t say it can’t happen to you. NYPD ordered 400 locking gas caps (even cop cars are getting hit).

Park in garages or well lit areas. It’s not the size of your tank, but as with everything — location, location, location.

Filed under:Fuel Price Trends,Gas price,Vehicle News | by Pump Girl @ 4:41 pm | 

May 5, 2008

Up in April, Down in May

 

Tom Kloza of Speaking of Oil sees that April price increases in gasoline will give way to May price decreases.

Here is his reasoning:

There are generally two high tides each year for crude oil, and for gasoline. The most predictable high tide comes in April and early May; the less reliable second rise comes during hurricane season. Ebb tides can be pretty severe – crude oil might give up 15-20% of value in any given year, which these days would translate into a $17-$24 bbl downside move.

- Market tops are often signaled by rhetorical extremes. We are certainly seeing that now, with oil likely to be the lead story for each network newscast and many print publications. I’ve been asked to do more radio this week than Paul Harvey did in his prime, and if I answered every print inquiry, I’d be in more newspapers than the Sudoku. I paused before writing this paragraph to google-search the term “oil price” in the news filter, and found 104,000 entries. There were only 5347 results for Paris Hilton and much more tragically, just 17,712 hits for Darfur.

- The sentiment is almost entirely bullish. A survey group that measures the outlook among commodity professionals finds that more than 90% of those in that group describe themselves as “bullish”. When 90% of investors or speculators are bullish about any given asset, it’s generally a tip-off that all of the buyers have already staked their claim, and the market is ripe for a turn.

- High oil prices have consequences. Oil prices have advanced by $68 bbl since late January 2007. That translates into increases worldwide of at least $1.62 gal for everything from gasoline to asphalt. Demand destruction will occur at these levels, not just in the U.S. but in developing countries as well.

On the other hand, this could be the “Black Swan.”

Filed under:Fuel cost,Fuel Price Trends,Gas price,Price Shocks | by Pump Girl @ 7:41 pm |