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July 30, 2012

Strong $ Sends Oil Down (a little)

 

For the first time in 5 days, the price of a barrel of oil went down – the futures anyway. Economic concerns in Europe and worries about a drop in consumption lead the way down.

Tim Geitner and Mario Draghi are supposed to meet in Frankfurt today. We’ll see what happens. The FOMC is has a 2-day meeting ending 8/1. ECB’s Governing Council is scheduled to meet 8/2. Interest rates and economic stimulus.

Filed under:Fuel cost,Gas price | by Pump Girl @ 5:07 pm | 

July 24, 2012

Say Good-bye To Lowering Gas Prices

 

The price of gas is rising again. Up seven cents from last week. Can you say ‘Iran’? Causing trouble again.

Take a look at the chart:

Filed under:Fuel cost,Fuel Price Trends,Gas price | by Pump Girl @ 4:05 pm | 

July 19, 2012

Oil Prices Rise for Seventh Straight Week

 

A drastic fall in gasoline supplies this month has caused gasoline prices to rise for the seventh straight week. The move surprised most energy analysts because of where inventories were declining most rapidly. The Padd 1 gasoline stockpile – notable because it includes the delivery point for the NYMEX – was found to be the major source of declining supply.

“Padd 1 gasoline stockpiles fell 1.2 million barrels to an eight-month low of 52.2 million, 6.2 percent below a year earlier. ‘People are worried about the drop in Padd 1, and lower inventories there can make futures prices rise,’ said Hamza Khan, an analyst at the Schork Group Inc., a consulting company in Villanova, Pennsylvania.”

Additionally, the newest statistics on housing data have been surprisingly positive, suggesting stronger demand for oil in the very near future.

“Housing starts climbed 6.9 percent to a 760,000 annual pace after a revised 711,000 rate in May that was faster than initially estimated, the Commerce Department reported in Washington yesterday. The median forecast of 79 economists surveyed by Bloomberg News called for 745,000.”

Most dramatically, new developments in the ongoing internal conflict in Syria have focused attention on the government of Iran. It is unknown how Iranian officials will react if their allies in the Assad regime are overthrown, but the general consensus is that it will increase tensions in the region. The embedded CNBC segment below features analyst Alireza Nader of the Rand Corporation giving his assessment of the current situation.

If Syria Falls, What Will Iran Do?

It appears as though these factors are all converging to bring oil prices off of their recent lows – and this is only the beginning.

Filed under:Causes and Solutions,Fuel Cost Control,Fuel Price Trends,Gas price,Price Shocks | by Eyes on Energy @ 2:37 pm | 

July 9, 2012

Gas Prices: Under The Hood

 

Econobrowser has a great piece complete with graphs and tools to update you on gas prices.

Read the whole article and look at the great pix. Use the tools to figure out the price of gas.

Filed under:Fuel cost,Fuel Price Trends,Gas price | by Pump Girl @ 7:58 pm | 

July 3, 2012

Gas Prices Set to Rebound as Iranian Tension Increases

 

The Iranian Parliament has set up a joint committee in a new effort to fight against the crippling sanctions that have been levied against the nation by the European Union. Among their proposed legislation: a bill to restrict the traffic through the Strait of Hormuz.

“…the parliament’s national security and foreign policy commission drafted a bill requiring the government to stop oil tankers from shipping crude through the Strait of Hormuz to the countries that support sanctions against Iran, a commission member said on Monday.”

At first glance, it appears as though we’ve seen this movie before. The Iranian government has threatened to shut down the Strait of Hormuz multiple times in the past, even going so far as to simulate the blockade with a series of war games. But the consideration of actual legislation might add some teeth to the otherwise tired threat – or so the market suggests. Today, wholesale prices jumped up 15 cents per gallon over concerns on this very issue. 

Gas prices have been remarkably low recently over concerns about weakening economies in Europe and the United States. The potential risks of sudden price spikes, on the other hand, have so far gone relatively unnoticed. This makes it an ideal time to lock in gasoline prices at today’s lows, without a need to worry about tomorrow’s highs.

Filed under:Fuel Budget,Fuel Cost Control,Gas price,Price Shocks | by Eyes on Energy @ 5:30 pm |