Gasoline Prices Soaring Again

By DataAnalytics

Monthly Gasoline prices SPIKE one more time.

Now $3.65 per gallon (2/24). THAT’S THREE DOLLARS SIXTY FIVE CENTS.
Up $0.08 cents within the week. So far gas has RISEN from $3.23 to $3.65
per gallon just since January.

(2/20)
The average pump price of regular gasoline in the U.S. has
now risen to $3.57
from a month ago at $3.385 p/gal., and
up from $3.171 p/gal., just a year ago. A hefty 12.6% rise.

Price Chart
Here is what the main stream media, the Street and the
department of energy are reporting:

Both Brent and WTI are trading well above $100 per Barrel.

WTI   Brent

The burning question is why.

Here are the corporate owned media ‘talking-points’:

  • Geo-political tensions
  • Possibility of supply interruptions
  • Decreased crude supply from Nigeria and Libya.
  • Decreased capacity from Cushing/Midwestern refinery’s
  • Higher demand from India & China

Nigerian production

 

In turn, this is what investment firms and traders use as
a so-called “inflection point” or “trigger” to artificially drive
prices up, of both crude oil and retail gasoline.

However, here are a number of facts uncovered by DataAnalytics.

Most of the previously lost Libyan production is back to
750-800K/per day.

Nigerian production of approx., 2 mb/per day has been relatively
stable for the past 15 months.

The supposed Geo-political issues in the middle east have been
on-going for the past 40+ years. This is nothing new.

The prospect of supply being disrupted is slight.

U.S. Gasoline demand is at its lowest in 17 years.

E.U. Gasoline demand lowest in a decade

  • The level of supply is elevated
  • The level of demand has decreased

Gasoline supply has increased 9.7% from January.
Refinery utilization has declined from 85.6% to 84%
per day or only 0.4% which equates to -218K per day.
(this is basically a negligible amount)

Other than geo-political rhetoric and wild, unregulated
speculation, the mostly normal and broadly acceptable model
of demand and supply, based on consumption, appears to have
no place in the current price  ‘controls’ established by Wall Street,
OPEC and supposed government regulations.

The fact is that the current and wild speculation is unfounded
and is in the process of creating a gasoline bubble. Just last week,
traders bought 90 million barrels of futures contracts for themselves.

A major consequence of course is increased consumer inflation
and the further erosion of discretionary income and spending.

The most perilous potential result could be a Double-Dip Recession.
The bottom line is that the average consumer will suffer the
most, while only a very select will benefit and benefit enormously.

When supply is up and demand is down, but prices keep rising,
it does not take a PhD to figure out the causation. Which is
neither one of a geo-political, mechanical or physical supply issue.
In short, it is simply the underlying ambition of unreasonable profit,
by baseless speculation, at the great expense of the consuming public.

We are working on a more in-depth story regarding crude oil
and gasoline commodities. Stay tuned.

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2 responses to “Gasoline Prices Soaring Again

  1. Pingback: Soaring Fuel Prices Hit Americans Hard | DataAnalytics.Insights

  2. Pingback: Gas Pump Prices « InfoMetrics

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