Hedge number has been lowered.
Now @ $2.00/gal.
Retail gasoline prices will stair-step rise once $2.00/gal is attained.
Prices between now and then will oscillate, gently creeping toward the hedge number.
The hedge number may be lowered depending on how long these prices hold.
Oil in storage is not being used.
Today’s oil is being used immediately.
What’s the “spot” price?
That’s the gauge.
As cheap as oil is I keep thinking I should pick up a few barrels, just to have around, ya know. Probably be great for getting my burn pile started, piss off the neighbors at the same time.
In all seriousness, it’s not just the glut of oil but every capital investment made from upstream thru downstream and refining of chemicals and other products that use petro feedstocks is based on the price of oil. So if it doesn’t get back up soon there will be a huge ripple effect in every related industry.