Gasoline supplies are up . So are wholesale gas prices.
Gas prices will increase from 3 to 15¢ a gallon by Monday, and
it has nothing to do with Syria and a LOT to do with the fact that
almost 1/3 of California's refining capacity has been shut off.
Analysts like cause and effect, and when they don't know WHY
prices are going up they always reach for the latest current
event to explain the situation. If you hear analysts blaming
Syria for our high gas prices in the next few days, don't
believe a word they say. There is no correlation. Syria does
not supply California with any gasoline.
This morning the average price of gasoline in Southern California dropped below $4 a gallon for the first time since mid-June, and I predict that prices will drop another two to five cents by Thursday, August 8, when I do my next prediction.
Oil prices are climbing: On Friday, West Texas Intermediary
(WTI) was selling on the NYMEX for $108 a barrel -- just pennies
away from the cost of Brent crude. This morning, both Brent and
WTI opened in the $107 a barrel range, with WTI costing just 44¢
less per bbl than Brent at 107.31 a barrel. This trend has had an
impact on California gasoline refining operations. For the last two
and a half years, Brent has usually sold for ten to twenty dollars
a barrel more than WTI, which has been devalued on the global
On June 20, I accurately predicted a major price spike despite an abundance
of surplus fuel.
In the days that followed, retail prices surged above $4 a gallon to $4.11, and
wholesale prices increased by as much as 64¢ a gallon to some independent gasoline
retailers. Now, I am predicting that prices will drop, or increase only a penny or two
going into the July 4 Holiday, despite a State-mandated increase of 3.5¢ in your gas
We are predicting that gas prices will surge from 5¢ to 17¢ a gallon by
Monday morning, June 24.
How one mylar balloon downed California's 5th largest refinery, and the effect it will have on local gas prices.Submitted by AgentOrange on Thu, 05/30/2013 - 16:41
Today, a mylar balloon downed Exxon/Mobil's Torrance refinery, which supplies 8% of California's gasoline. On May 9, Exxon announced that it was shutting its refinery down for "planned maintenance." In the next four days, Southern California gasoline prices soared 8¢. The current shutdown, which sounds more like an aborted restart, is likely to cause more jumps at the pump this weekend as fuel buyers scramble for supplies.
Oil prices are going down. The spot market price for gasoline is down. Your gas prices are going up.
Demand for gasoline in California has tanked every year for the last six years, yet prices continue to rise, even as oil prices drop. In 2008, for example, oil was selling for $147 a barrel, and California gasoline reached a record high of $4.62 a gallon. And last October, when gas prices in California surged to an average of $4.72 a gallon - the new record high - the same oil was selling for $89 a barrel.
Today, (2-28-13) we predict that gasoline prices should begin to decline on average in San Diego County through Monday from six to twelve cents a gallon.