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October 25, 2011

All Oil Prices Not Created Equal

 

That explains a lot! Why don’t gas prices go down when the price of oil falls? Which oil price would you be referring to? West Texas Intermediate? Brent?

Right now WTI trades about $20 less than Brent.

Asian demand – more tightly connected to Brent than WTI.

Why should we care? US refiners get a lot of their oil from overseas. You guessed it. More the price of Brent, than West Texas.

Filed under:Fuel Budget,Gas price | by Pump Girl @ 5:40 pm | 

October 24, 2011

Inflation is Good (so they say)

 

We paid more for food and gas last month, but price rises in everything else were tame.

Gas up 2.9%. Food up .4%. But we can stay warm – clothing prices fell.

A small amount of inflation is good for the economy. It encourages businesses and consumers to spend and invest money sooner rather than later, before inflation erodes its value.

Of course unemployment has been in the neighborhood of 9% for a couple of years, which cuts down on discretionary spending.

Good news for seniors, though. Social Security benefits will finally get the first cost of living increase since 2009.

Filed under:Energy,Fuel cost,Fuel Price Trends,Gas price | by Pump Girl @ 6:44 pm | 

October 19, 2011

Gas Prices Forecast to Go Down, But No

 

At the beginning of October gas prices were going down little bitty bit by little bit, and were supposed to keep up that march until the end of the year. Somebody did not get the memo.

The past week we had a sharp spike. That’s right – a spike. Some places reported a rise of 10 cents a gallon.

The cause? LATimes says:

One major reason for the increases was that the U.S. is exporting a considerable amount of fuel overseas, leaving the nation’s supplies more vulnerable to sudden price bumps if there are any refinery outages or jumps in the price of crude oil.

Patrick DeHaan of GasBuddy.com.

It’s a pretty easy forecast this week — gasoline prices will likely rise in a majority of areas … Overall, a lousy week for motorists, and I don’t expect it to get much better any time soon.

Just how long are these higher prices going to stick around?

Filed under:Fuel cost,Gas price | by Pump Girl @ 6:07 pm | 

October 18, 2011

Blame the Price of Gas for Everything!

 

Increase in gas prices drove up wholesale prices in Sept. by the most in 5 mo. Economists say it was mostly s seasonal quirk, and it’s not really as bad as it looks.

BUT -energy prices up, wholesale gas prices up, food prices up big-time.

Other views:

Neil Dutta, an economist at Bank of America, attributed much of the gain in energy prices to one-time factors.

“Is this a harbinger of broad-based inflation that is about to hit the U.S. consumer?” he asked. “Don’t count it.”

and:

The core index has risen 2.5 percent in the twelve months that ended in September, the same as the previous month.

“Inflation is not wildly out of control but it certainly isn’t as tame as would be expected during this stage,” said Jennifer Lee, a senior economist at BMO Capital Markets.

The price of oil fell 52 cents to $86.28 in Monday’s trading. Gas prices at the pump averaged $3.46/gal. on Monday.

Filed under:Energy,Fuel cost,Fuel Price Trends,Gas price | by Pump Girl @ 5:44 pm | 

October 16, 2011

Have Fuel Prices Bottomed?

 

That’s the word from Wright Express (via Automotive Fleet).

In a new report from Wright Express (WEX), the company said fuel prices are as low as they’re going to get and are likely to rise in the coming weeks. The company said experts believe that despite current economic woes and reduced demand, fuel prices will remain strong for the rest of the year.

Retail gasoline prices dropped more than 25 cents during the month of September, but WEX said some experts believe prices have hit bottom. Last week, wholesale gasoline prices were at $2.50-$2.70 per gallon, but the week ended with some markets back above $3.00 per gallon.

We have been watching the wholesale market closely, and we can see the apparent firming of prices. Check out the CME chart of wholesale gasoline futures.

Filed under:Energy,Fuel cost,Fuel Cost Control,Fuel Price Hedging | by OldProf @ 2:16 pm |