Skip to comments.Oil below $90 USD
Posted on 05/23/2012 10:09:24 AM PDT by WellyP
Live update: Oil at $89.53 a barrel. Dow down 156 http://www.marketwatch.com/investing/index/DJIA Dollar up vs Euro at 1.256. http://www.xe.com/currencycharts/?from=USD&to=CLP Chilean Peso has dropped aprox. 8% relative to the Dollar in the last month while copper has dropped to $3.39 a pound.
Warren Buffett wept.
It dropped to $3.63 yesterday in Coastal Maine.
Not in CA - we are now paying around $4.25 in the bay area. It was down to $3.97 just two weeks ago?
You’d think there was a big election coming up, or something. :-)
Yeah. It’s twice what it was when Obama seized power, and we’re happy it dropped a little.
That specific blends required in California limit the suppliers of the fuel.
Does California have some kind of big summer additive requirement that caused the spike 2 weeks ago? We have been SLOWLY but steadily trending down in VA for a month now. I was paying as high as $3.89 and paid $3.49 this morning.
Cherry Point refinery CDU restart stopped-sources
May 10, 2012
$3.47 here in Texas yesterday. Shows down $0.06 to $2.86/gal today on the market for July delivery. Add state and Federal taxes + dealer profit to get price at pump in July.
Unleaded regular has dropped from $3.99 to $3.33 here in Central Virginia.
The oil companies in WA all make the CA blend for the all the states. They find it more efficient to simply blend the more expensive CA blend for everyone.
BP plans to be up and running by the end of the month. Part of the problem is that the fire occurred right before the scheduled CONOCO turn around and BP had to wait for the contractors to finish at CONOCO before they could even start at BP. So, there were two refineries down at the same time for a month.
Perhaps the reversal of direction of that OK to TX pipeline?
Perhaps connected to the reversal of direction of that OK to TX pipeline?
$3.25/9 in mid-Missouri earlier this week.
I drove to S. IA to decorate graves. Averaged nearly 27 miles per gallon in new Ford Fusion.
Nope, 100% speculation connected to Europe. When the Euro crashes, the dollar is going to strengthen big time and commodity holders are going to lose their shirts.
West Coast Gasoline Markets: Price Relief Should be Coming Soon
May 23, 2012
While the price for gasoline this year has remained below $4 per gallon for most of the country, prices on the West Coast (PADD 5) have been holding above that level since late February. Since the national average price for regular gasoline peaked this year at $3.94 per gallon on April 2, prices across the country generally have been trending downward on the back of decreasing crude oil prices, with the national average falling to $3.71 per gallon on May 21. In contrast, the average West Coast retail gasoline price remained at $4.24 per gallon on May 21, only two cents below its 2012 peak from a week earlier (Figure 1). While refinery issues have hit the West Coast particularly hard over the past few months, the imminent return of BP’s Cherry Point, Washington refinery should bring lower prices to gasoline consumers in the region.
Abnormally low refinery runs on the West Coast since February tightened local gasoline markets, causing both wholesale and retail gasoline prices to rise. The West Coast gasoline market began 2012 in uneventful fashion, with gross inputs into PADD 5 refineries tracking their typical level during January, then edging downward as refiners underwent planned seasonal maintenance. Instead of trending back upward from early February as typically happens as refineries come back online following maintenance, runs this year continued to move lower, following a late-February fire at BP’s Cherry Point refinery in Washington and a string of unplanned outages at other plants. The Cherry Point plant is only now returning to service.
By mid-April, four-week average gross refinery inputs on the West Coast bottomed out at about 360,000 barrels per day (14 percent) below typical levels. Reduced refinery operations first put upward pressure on wholesale prices, which later translated into higher prices at the pump. Over the last five years, from March through May, retail prices in PADD 5 have typically averaged about 35 cents per gallon above those on the Gulf Coast (which provides a good baseline for comparison as the center of the U.S. refining industry). However, in 2012, West Coast prices over this period have averaged about 53 cents per gallon above the Gulf Coast, with that difference reaching as high as 75 cents per gallon on May 21.
While unplanned refinery outages generally cause retail product prices to rise, the West Coast market is especially sensitive to such shutdowns. That is because the West Coast market is relatively isolated. Given the West Coast’s lack of significant pipeline connections to other markets and relative distance from the active physical trading markets in the Atlantic Basin, outages there tend to cause more severe market dislocations as the logistics involved in backfilling supplies can be difficult.
For a period in March and early April, sustained higher wholesale prices did attract incremental imports to the West Coast, which provided some relief. However, persistently low refinery runs eventually translated into several weeks of inventory draws, which left PADD 5 gasoline inventories at 24.1 million barrels on May 18, about 5.1 million barrels (17 percent) below typical levels for that date, the lowest for the region since March 1999. The situation culminated the week of May 7, when market expectations of a Cherry Point restart were quashed as the restart encountered problems and had to be halted. Wholesale gasoline prices in Los Angeles shot up about 30 cents per gallon over the course of the week, and even more in Pacific Northwest markets, pushing the West Coast average retail price for a gallon of regular gasoline up to a 2012 high of $4.26 per gallon on May 14.
Gasoline prices on the West Coast, however, appear to be moderating. With widespread reports that the restart of the Cherry Point refinery is imminent, there has been a sharp reversal in West Coast wholesale prices over the last week. That change is starting to be reflected in retail prices. The average price for regular gasoline on the West Coast fell two cents per gallon last week to $4.24 per gallon on May 21. Experience suggests wholesale price changes tend to be fully passed through to retail prices over the course of about six weeks. This means if the wholesale market in PADD 5 is not subject to new disruptions, retail prices should see continuing downward movement in the coming weeks.
Jumped up today to $3.85 cash, higher for credit here in southeast Michigan. Gotta gouge all the folks preparing to head up north for Memorial Day weekend doncha know.
update - $3.35 all around me today in Texas.
Yeah - about the same here in Seattle. Must be going up because the economy is booming and all the millions of workers driving to new jobs.
$4.06 at one station in the East San Jose cheap seats to a Union 76 station price of $4.69 over by Apple HQ in Cupertino.
The good gas - Chevron - averages $4.35 throughout the area.
I think that WA state also has some of the highest gasoline taxes in the country and they have passed a law that promises to raise the cost even more, a tax on hazardous substances imported to the state for manufacturing or refining. The goal is to get you out of your car.
During our visit to CA, recently, we noticed that not only are the gasoline prices higher there than in WA state, but that they seemed to have closed most of the gas stations, making it necessary to have to drive a distance to find a station. It was really annoying.
Washington State has the 9th highest gasoline taxes.
10th highest for diesel.
The goal is to get you out of your car.
The result will be getting more out of your state.
Yeah, but that’s just taxes at the pump. WA state has all sorts of hidden taxes, like the barrel tax and the new hazardous substance tax that is supposed to penalize oil companies for particulate in the air that settles on the roads and ends up in the storm water. All the extraneous hidden taxes get passed on to the consumer at the pump.
BPs Wash. refinery back to work after Feb. fire
A BP refinery in Washington state that shut down after a February fire has resumed normal operations.
BP spokesman Scott Dean in Chicago said Thursday that repairs and maintenance were completed in May at the Cherry Point refinery near Blaine.
The three-month outage has been cited as one reason that gasoline prices have been higher on the West Coast than the rest of the nation.