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October 22, 2012

‘Tis the Season for Lower Gas Prices

 

The seasonal slide is a good thing when we talk about gas prices. The ave. retail gas price has fallen to $3.74 per gallon and should continue in that direction.

Tom Kloza, chief analyst for OPIS, sees another 5 to 15 cents/week for the next 3 weeks.

“There’s some nice relief coming,” said Kloza.

Refinery and pipe line problems delayed the usual decline in gas prices as refiners switch to the cheaper ‘winter blend’.

Help is on the way.

Filed under:Fuel cost,Fuel Price Trends,Gas price | by Pump Girl @ 6:37 pm | 

October 16, 2012

Professor Hamilton Talks CA and Gas

 

Professor James Hamilton looked at the California Gas problem and Gov. Brown’s solution.

Strictly California for one thing. It has separate gas requirements from the rest of the US with a much more expensive summer blend. Nobody wants to be stuck with too much of that inventory on hand when the state is allowed to switch to the cheaper winter blend. Bad news when 2 refineries making the summer blend get KO’ed at the same time.

The solution?

…on Sunday Governor Jerry Brown (D-CA) directed the California Air Resources Board to allow use right now of the winter blend instead of waiting as usual until the first of November, a move that the Board has implemented. This allows existing stocks of the winter fuel to be sold to add to the supply of the summer blend. Moreover, because a greater volume of the winter fuel can be created from a given barrel of oil, Brown’s move allows more California gasoline to be produced each week. The Governor’s statement claimed that “allowing an early transition to winter-blend gasoline could increase California’s fuel supply by up to an estimated 8-10 percent with only negligible air quality impacts.”

Read the whole article to get a grip on the situation with the Professor’s charts.

Filed under:Causes and Solutions,Fuel cost,Fuel Price Trends,Gas price | by Pump Girl @ 6:45 pm | 

October 8, 2012

Jerry Brown Up To The Plate

 

CA gov., Jerry Brown ordered a release of ‘winter blend’ gasoline almost a month earlier than usual to increase supply.

Gil Duran, a spokesman for Brown, said the governor looked at all the options available, particularly scientists’ prediction that such a change would not have a significant effect on the environment and “when he learned this could increase the supply by 8 to 10 percent, it just made sense.”

This is the 1st time since 2005 after Katrina that the winter blend has been released earlier than 10/31.

It’s still going to take a few days for gas prices to go down, but relief is on the way.

Filed under:Causes and Solutions,Fuel cost,Gas price | by Pump Girl @ 7:50 pm | 

October 5, 2012

CA Might Want To Change Motto

 

California State Motto is Eureka! (I have found it). California drivers (of which there are many) have found the price of gas rising to almost $5/gal. almost overnight.

Refinery outages and pipeline problems are to blame. Costo even closed some of its stations.

Other gas stations charged more than $5 a gallon. The Low-P station in Calabasas charged $5.69 Thursday. The pumps bore hand-written signs reading, “We are sorry, it is not our fault,” the LA Times said.

Said Tom Kloza at OPIS:

“Wholesale price increases lead to retail price increases,” Kloza said. “But there is some restraint among companies who do not want to exercise their current pricing power and irritate their customers.”

Even Hawaii has lower gas prices.

Filed under:Fuel cost,Gas price | by Pump Girl @ 6:25 pm | 

October 4, 2012

Bad Combo

 

Turkey retaliates on Syria, refinery fire in TX.

Oil prices up 2%.

The hostilities between Syria and Turkey reinforce supply fears, as a number of pipelines cross the region,” said Carsten Fritsch, an oil analyst at Commerzbank in Frankfurt.

US RBOB up 9.07 cents. Refinery fire was located at Exxon Mobil complex in Baytown, TX, the largest operating US refinery.

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