Posted on 05/16/2022 9:27:22 AM PDT by blam
US retail gasoline prices soared to another record on Monday as global refineries struggled with adding new capacity ahead of the driving season.
Before diving into Goldman Sachs’ new commodity note explaining how global refining will be tight for the foreseeable future, last week, Saudi Energy Minister said, “the bottleneck is now to do with refining … many refineries in the world, especially in Europe and the US, have closed.”
Goldman’s commodity analyst Neil Mehta outlines a rash of refinery retirements, reduced Russian energy exports, recovering jet fuel demand, and tight global inventories for products, particularly diesel, have supported higher retail fuel prices.
Mehta points out US product inventories are below a 10% five-year average, refining utilization rates are below normal, global natural gas prices are high, and demand for diesel remains robust.
US product and total inventories are well below a five-year average.
US refining utilization struggles to increase as the driving season begins.
“We believe the oil market needs to price to demand destruction, which will drive the least elastic prices, such as those for distillate, higher,” he said, adding tight inventories could last through this year and well into 2023.
While the demand destruction has not begun yet (from what we have seen in the data), the price adjustments for refined products is starting to reprice drastically (in barrel equivalents below for easy comparisons)…
A lack of refinery capacity is the culprit of rising fuel prices. The average cost of US gas prices at the pump on Monday morning is $4.483 and $5.56 for diesel.
Today’s refinery bottlenecks may suggest that even higher prices are ahead this summer as the driving season begins.
there will be no second term.
Looks like Georgia and Oklahoma have the best prices. Alabama could, too, if it weren’t for MeMaw’s gas tax.
I started calling the people I’ve seen driving their RV’s or pulling their boats rich folks. They must be rich to be able to afford to fill those things up.
When I was a kid back during the 70’s gas shortage, my dad had a big motorhome and we found a bumper sticker at a truck stop that read ‘eat more beans, we need the gas’. So of course, we bought it and put it on the bumper.
“there will be no second term.”
The cheating is baked in now. Not only will he get a second term I predict even more “votes.” And if I am wrong. It doesn’t matter much anyway. The bureaucracy is running the show no matter who is elected.
“The cheating is baked in”
explains why these brownie’s taste like crap.
I predict we slay them in nov and finish it in 2024
I figure just about the time we go headlong into an EV centric society, then the envirowhackos will start protesting that.
Afterall, their movement is really about de-growth of the human population.
Someone did at my expense last month.
400 bucks in fuel on a card that was skimmed about a month before. Bought in Pennsylvania. I’ve never been and don’t know anyone there.
The fraud squad caught and alerted me. New card and new number.
I had maybe used the card two or three times physically since late January.
Gas stations by me were those places it was ran through a reader.
I pay cash now.
it’s about control.
I figure just about the time we go headlong into an EV centric society, then the envirowhackos will start protesting that.
Afterall, their movement is really about de-growth of the human population.
If we get into a hot war we are likely to run out fuel.
That will be Joes’ plan about midway through next year. He and the Dems know they are toast so they will throw everything they have left at one last chance to destroy this country once and for all
XOM has tripled since Potatohead was “elected”.
They closed one down in NM last year.
The cheating is baked in now. Not only will he get a second term I predict even more “votes.” And if I am wrong. It doesn’t matter much anyway. The bureaucracy is running the show no matter who is elected.
**********
Lots can happen in a couple more years for any individual in
his age range. I personally don’t think he will be the demos
candidate on Tuesday, November 5, 2024. One term and done.
That is the money quote from the GS analyst.
"Demand destruction" in a term-of-art meaning to purposefully price gouge consumers out of the market, which is now the expectation institutional stock holders have for all petroleum based energy companies.
In other words, the ESG types who run Wall Street are forcing our economy off of "fossil fuels" by downgrading stocks and denying capital.
The Democrats still think it will stop people from driving and not make them VERY MAD
Yes, my long suffering XOM investments are blossoming this year. Thanks, Brandon.
Just skip on down to the lectric car store and pick yourself up an EV. Everyone’s getting them.
This is a feature, not a bug, for the elite as they try to force a "green" economy on America and force Americans back into crowded, Dem-controlled cities.
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