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More often than not, it's the price of gasoline, heating oil and other distillates that determines the price of crude oil, not vice versa as the MSM would have you believe.
Retail gasoline prices tend to be at a $0.75 to $1.25/gallon premium to the wholesale gasoline price as traded on the New York Mercantile Exchange, which would mean that a wholesale price of $2.89/gallon would indicate a retail price of $3.64 to $4.14/gallon, depending on where in the U.S. the retail pump might be located.
Anyone can easily monitor the gasoline, heating oil and crude oil futures prices on the New York Mercantile Exchange (because these prices are available at no charge, they come with a 30-minute delay) by going to:
More often than not, it's the price of gasoline, heating oil and other distillates that determines the price of crude oil, not vice versa as the MSM would have you believe.
Retail gasoline prices tend to be at a $0.75 to $1.25/gallon premium to the wholesale gasoline price as traded on the New York Mercantile Exchange, which would mean that a wholesale price of $2.89/gallon would indicate a retail price of $3.64 to $4.14/gallon, depending on where in the U.S. the retail pump might be located.
Anyone can easily monitor the gasoline, heating oil and crude oil futures prices on the New York Mercantile Exchange (because these prices are available at no charge, they come with a 30-minute delay) by going to:
Walter - Interesting... But not all crude is equal, yes? Certain types will be more in demand - i.e. WTI, Brent, etc, right? Doesn't that play into the prices, as well?
Walter - Interesting... But not all crude is equal, yes? Certain types will be more in demand - i.e. WTI, Brent, etc, right? Doesn't that play into the prices, as well?
Depends on the sulphur content: low sulphur (sweet) crude yields more gasoline and generally trades at a premium to high sulphur (sour) crude.
However, because of concerns over Mid-East supplies of high sulphur crude, short covering by those who had sold forward in anticipating of having supplies on hand to make delivery has resulted in a situation where North Sea crude is at a premium to Texas crude, when it normally trades at a discount.
More often than not, it's the price of gasoline, heating oil and other distillates that determines the price of crude oil, not vice versa as the MSM would have you believe.
Normally, I would agree with that. But in this case, like you mentioned in a following post, it's the mid-east turmoil. Libya lost something like half its daily production or close to 600k barrels per day?. I heard rumors that rogue groups were going to try the same types of protests in Saudi Arabia, the mecca of oil production and possibly attack the King when he returned from his surgery done in NYC. That definitely fanned the flames of the speculators pushing this higher. I think they'll get crushed though eventually when/if this commotion wears out because supplies are higher than normal heading into driving season plus we're warm for End of Feb/Beginning of March.
Here's the Kings motorcade this past week:
Our gas prices are still nothing compared to Europe and Asia.
That's true, but autos are so much smaller and more fuel efficient in Europe --with a high percentage of 32-40mpg diesel vehicles. Plus, mass transit is sick (good) in major European cities and the EU in general does not produce as much oil, nor refine as much gasoline as the US. Asia I'm not too sure of, but China I know has huge subsidies for its citizens. Gas is cheaper there than it is here.
The crack spread -- the difference between the prices received for gasoline. heating oil and other distillates less the cost of acquiring crude oil, representing the gross refinery operating margin -- has increased about $13 a barrel since early January as the price of gasoline, heating oil and other distillates have advanced more than the cost of obtaining crude, indicating that it's the products, not crude oil, that is leading the market higher
Under a new law, anyone who buys gasoline in Suffolk will pay county sales tax only on the first $3 of every gallon. Pumps around the county will be recalibrated to not charge the 4.25 percent county tax on any amount above that, as prices edge toward $4 a gallon.
At today's close, wholesale gasoline was up 9 cents at $2.98 a gallon, indicating a retail price of $3.73 to $4.23 a gallon, depending on where in the U.S. the retail pump might be located
Guess I can go out and buy that Chevy Suburban now.
Ah that's nothing. I'm getting my own personal 18-wheeler!! Every American should have one to haul their stuff, kids, and pets around in!! Chevy Suburban? Okay if you want something tiny.
The crack spread -- the difference between the prices received for gasoline. heating oil and other distillates less the cost of acquiring crude oil, representing the gross refinery operating margin -- has increased about $13 a barrel since early January as the price of gasoline, heating oil and other distillates have advanced more than the cost of obtaining crude, indicating that it's the products, not crude oil, that is leading the market higher
It's not always the demand Walt, it could be the supply side taking all of us for a ride. I think we're being swindled by the refiners (possibly in collusion with Big Oil). Why are refinery runs extremely below normal for this time of year (79.6%) if the crack spread is so favorable for refiners?
As pump prices surge toward $4 per gallon, it is hard to understand why more capacity is not being utilized to get more product to market. I would think this will soon invite government scrutiny.
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Some Good News in Suffolk
