American drivers’ seemingly insatiable thirst for gasoline is running into a flood of supply.
Refineries across the nation are operating full-out and imports are pouring into the East Coast, boosting gasoline supplies to a record. At the same time, consumption has turned out to be less robust than thought. That’s weighed on prices, threatening to stem oil’s rebound from a 12-year low.
"Earlier this year there was a lot of hope that gasoline would lead crude higher," said John Kilduff, partner at Again Capital LLC, a New York hedge fund focused on energy. "That’s not turned out to be the case and gasoline will soon be a weight on the market."
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6 comments:
All markets are rigged including the futures trading for Oil and RBOB. There is no economical reason for the current high price for gasoline in the US. It was simply "bid up" by Wall Street financiers.
As the inventory rose, the price continued to rise as well.
High inventory and High prices do not make economic sense.
It is a manipulation by the rich.
1:03 PM: "current high price for gasoline"!!!!????
Where were you three years ago, or after Katrina hit? Current gas prices are half of what they were then. The continuing glut in the massive inventories of crude oil is what stopped the traders from profiting from the continued buying up of any oil supply, regardless of demand. All that oil in storage (526.6 million barrels by last week's count)is costing the buyers storage costs until it is actually sold and used. Each barrel of oil can make 12 gallons of diesel fuel AND 19 gallons of gas. The buyers are losing their butts in speculation now. Boo, Hoo...NOT! 526.6 million barrels equals 22.117 BILLION gallons of oil. Already saw gas below $2 just this past weekend. The "rich" are losing money in the oil markets, big time, at this point in history. If the rich were manipulating the oil markets, oil would still be $140.00 a barrel and not $46-$48, at today's current price. And gas would still be $4 a gallon. Market forces are still in effect. Traders can influence prices in the short run, but that $140.00 price of a barrel of oil just caused the producers to ramp up production (GREED)) and flood the market with oil. Just like Adam Smith theorized many years ago, the "invisible hand" of the marketplace (supply and demand) will rule the marketplace. Nothing has changed.
2:50
Sorry. You don't know beans from peas.
The price of gasoline and oil are still far higher than "market conditions" would warrant.
All markets are rigged. All of them.
Why can't you earn any interest on your savings account?
How about Treasury Bonds?
How about gold and silver?
You under estimate the schemes of the Wall Street companies with their high frequency trading algorhythms.
Why has it been going up?
6:34
The price of gasoline is going up because it can.
5:15: You sure have trouble with digesting facts. You have nothing. Not one lousy fact. Just your uninformed opinion and vague accusations of manipulation. You obviously have no business background or education. And I have no time to educate you on monetary policy.
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