Energy / Gas Prices

• Are Americans Becoming Inured to High Gas Prices

  With the EU's debt crisis and the Iranian confrontation relatively quiescent, attention has turned to the incessant increase in U.S. gasoline prices. The Capitol Hill gas station, where at least some members of Congress fill up, is currently selling regular for $4.49 a gallon. If you prefer to do business at the Watergate Exxon it will set you back $5.39 for regular. For a real taste of the future, then be sure to come in a full-sized SUV with a big V-8 and a 33 gallon gas tank - a fill-up will only be $188 for premium. Before we get…

• Factors that could make $5 a Gallon Gas the Norm

  It is hard to miss the recent rise in gasoline (gas) prices in the United States, and the rumblings that it has generated in the national press. It is a concern that has already entered the on-going political debate with one Republican candidate promising that, once elected, he will bring the price of gas down to $2.00. (The unreality of that prediction has been explained earlier.) As a result there have been a number of reasons projected (for example here) as to why, in contrast with most seasons, gas prices are rising at the present, in the season of the…

• Reasons Why Gasoline Prices are so High

  Here in northern California gasoline is now retailing for $4.20 a gallon. Prices haven’t been this high since mid-2008. Forecasts for $5 per gallon gas in the US this summer are now commonplace. What’s driving prices up? Most analysts focus mostly on two factors: worries about Iran and increased demand from a perceived global economic recovery. However, as we will see, there are also often-overlooked systemic factors in the oil industry that almost guarantee us less-affordable oil. Iranian Poker Iran wants nuclear power and (probably) the capacity to build a nuclear weapon; the latter is unacceptable to Israel and the US.…

• Bill O'Reilly's Confused Approach to Solving High Gas Prices

  Last week I was interviewed by Alan Colmes from Fox News Radio on the topic of gas prices. During the interview, he mentioned an idea that Bill O'Reilly has proposed, and that is to address gasoline prices by discouraging U.S. oil companies from exporting their products. The critics of Bill's proposal have generally focused on the notion that "We can't tell the oil companies where to sell their product." However, there is a far more fundamental issue, and that is that the basic facts of his proposal are based on an erroneous assumption. Let's first have a look at the…

• Politics, Pandering and Petroleum Prices

  Oil prices were up more than $1 per barrel by Friday after the IAEA proclaimed that Iran was ramping up its enrichment activity, continuing a rally that began more than a month ago. Lingering concerns over oil-rich Iran is in part the reason for the rally, which makes its way to the pocket books of consumers by way of higher gasoline prices. However, with campaign season in full swing in the United States ahead of the November presidential elections, it's likely the politicking and speculation are contributing to the energy woes. The U.S. Energy Information Agency said the average price for…

• Natural Gas Analysis for the Week of February 27, 2012

  April natural gas continued to consolidate last week, but the weak close could mean another test of the support. Last week, the market sold off sharply after testing downtrending resistance at 2.7250. This has put the market in a position to break into uptrending Gann angle support at 2.6380 or 2.5380. A successful test of these two support angles will mean that buyers are stepping up and that a secondary higher bottom may be forming. If this occurs then all it is going to take is a breakout above 2.7250 to fuel an acceleration to the upside. Of course, increased…

• Peak Oil's Affect on Gasoline Prices in 2012

  In recent days there has been much discussion in the press about what might happen to gasoline prices in the coming year. Cognizant of the fact that retail gasoline is currently running nearly 30 cents per gallon higher than it was in January 2008 the year when prices topped out at a national average of $4.11 and that gasoline futures have risen by 30 cents a gallon in the last few weeks, there is reason for concern. Typical of the stories is one from the Los Angeles Times that quotes Tom Kloza, long-time chief analyst for the Oil Price Information…

• New Report Shows Motorists How to Spend Less Money on Gasoline

  For many the idea that operating a motor vehicle can be much cheaper is a non-starting idea.  Their real world experience won’t support the facts because their situation is most likely urban – or they’ll just lazy about taking care of their machines. Hypermilers, a term for those working at every inch of travel from every drop aren’t going to get a lift from what follows, but the folks at the University of Michigan have put real research into the basics that hypermilers use to go very far and the rest of us can use to save a bunch of…

• Bachmann's $2 Gas Price Promise - Naive or Dishonest?

  Like many of you, I am often unhappy with our political leaders. One thing that annoys me the most is that many will say or do just about anything to get elected. By now, you have surely heard the news that Republican presidential hopeful Michele Bachmann has promised a return to $2/gallon gasoline if she is elected president: GOP candidate Michele Bachmann: I’ll bring back $2 gas NEW YORK (CNNMoney) — President Michele Bachmann has a promise: $2 gas. “Under President Bachmann you will see gasoline come down below $2 a gallon again,” Bachmann told a crowd Tuesday in South…

• Oil Price Drop offering No Relief for Motorists as Gas Prices Remain Unchanged

  The Reuters Jefferies CRB Index is down 8% so far in May with almost every single commodity in the index registering red. Even the ongoing geopolitical tension in the Middle East and North Africa has not been able to shield the ever bullish crude oil from the commodity rout. Both Nymex WTI and ICE Brent suffered heavy losses. In the two weeks ending Friday, May 13, Brent dropped about 10% to close at $113.83 a barrel on ICE, while WTI plunged 12% to $99.65 a barrel at Nymex, and RBOB gasolne futures for June also lost 8% to around $3.0766…