Read the original story and see video footage from The Core Report HERE by reporter Roy L. Hales. Summary: This story outlines the basic bones of the plot between top bureaucrats at the California Public Utilities Commission and Southern California Edison (SCE) to funnel $3.3 Billion dollars into a bailout plan for the failed nuclear reactors at San Onofre.
Charles Langley's blog
UCAN's Four-Day Gasoline Gougecast
Every Monday and Thursday evening, UCAN looks at the local gasoline market and predicts whether or not gas prices will go up or go down. We give the forecast to Consumer Bob at NBC 7/39, but you can also get it here and comment on our forecasts.
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
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.
San Diego gas prices increased 3.3¢ a gallon since Monday, matching the rate of increase we saw during the entire month of December in 2012.
We predict that gas prices could climb as much as 5.5¢ a gallon by Monday, despite reports of healthy inventories of gasoline on the West Coast, and relatively stable oil prices.
On Monday morning, the market barely seemed to have a pulse. The three factors came into play:
On Thursday we predicted that gas prices would fall
another 8¢ by today (see last blog).
Today, our look at wholesale prices shows that despite
significant volatility on the wholesale level, gas prices will
continue to decline in Southern California.
We predict that prices will drop on average by 4 to 10¢
a gallon by the time we make our next prediction on Thursday.