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June 28, 2012

Gasoline Prices Hit 6-Month Low

 

Drought, fires, hurricane, we deserve a little good news! Prices for gas in the US are at a 6-month low. Per AAA, the average price is $3.41/gal. ( In South Carolina, its even below $3/gal)

With all the other problems in the economy though, people are not inclined to drive more.

Just a little FYI–in the months before the 2008 election, a gallon of gas was $4.11.

Filed under:Fuel Budget,Fuel cost,Gas price | by Pump Girl @ 4:00 pm | 

June 27, 2012

Trend Change

 

For an extended period of time energy markets have had a declining forward curve in futures, although the trend showed seasonal fluctuation.

This is a condition called “backwardation.” It means that future prices are expected to be lower. It does not mean that potential buyers should wait, since the lower prices can be locked in at any time.

It is a mistake for consumers to focus on the current spot price of gasoline or oil. The forward curve is much more important.

The danger sign? This comes when the futures curve shifts from a declining pattern to one where prices show an increase in future months — Contango. This is happening now in Brent Crude, although we do not yet see it in other markets. Izabella Kaminska at FT Alphaville is all over this important story. Take a look at the chart of the forward curve in Brent.
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For fuel consumers this deserves close attention.

Filed under:Fleet Managers,Fuel cost,Fuel Price Trends | by OldProf @ 10:50 pm | 

Supply Limits and Upside Risk

 

There are a number of short-term supply considerations for wholesale gasoline (RBOB) and this led to a price spike this week.

We follow Bank of America’s excellent daily commentary — one of several great sources on up-to-the-minute energy price information. Here is a key thought from their daily commentary:

It feels as though the market is still concerned with gasoline availability as stocks in the US are fairly low while there is less refining capacity in the Northeast. Thus, any disruption to supplies coming either from a weather event or otherwise means price distribution remains skewed to the upside. As the potential remains for both tropical storm weather and extreme heat wreaking havoc on the thinning refining complex in the near term, the pain trade for gasoline maybe to the upside in the short term.

This kind of information is helpful in putting the daily fluctuations in perspective. For our clients we emphasize looking at long-term trends and futures prices for various periods. The forward curve may provide a better opportunity than what you can see in daily prices.

Local pump prices can be especially misleading.

Filed under:Ask Jeff,Fuel Price Trends | by OldProf @ 9:31 am | 

June 26, 2012

New Gas Promo

 

Listen up, Loyal Readers,

I am paying 20 cents less than you are at Shell stations in my (Chicago) area. Hard work and research, you may ask? No. This one slapped me in the face. A new promotion popped up at my local grocery store. For every $50 I spend, I save 5 cents/gallon at participating gas stations.

Who knows how long this will last, but you know what? If you have a fleet of cars, trucks or buses that you have to fill up with gas, AND your drivers don’t have a loyal shopper card for my grocery store, you have an opportunity any time you want to take it.

You can hedge your fuel prices by contacting Gas-Lock.com.

Think gas prices are heading down for the long term? Seriously?

Oh hey, let me know about any other great gas deals you come across. Thanks!

Filed under:Fuel cost,Fuel Price Hedging,Gas price,Hedging | by Pump Girl @ 6:34 pm | 

June 19, 2012

Oil Prices Down on European Worries

 

European worries (Spain this time) sent oil prices down again. They started with Greece and have been doing the ‘wave’ through other countries.

“Oil is really reflecting concern about where the economy is headed in coming months,” said Gene McGillian, a broker and oil analyst at Tradition Energy.

Retail gas prices fell less than a penny, though. Down to %3.505/ gal. That makes it 43 cents less than the peak in April, and 15.8 cents cheaper than it was at this time last year.

Huzzah!!

Filed under:Fuel cost,Fuel Price Trends,Gas price | by Pump Girl @ 6:15 pm |