Finance, Fuel Prices, Economics, Markets

Can’t Catch a Break

The beleaguered boating industry just can’t catch a break. Just when oil prices appear ready to start falling, they reverse and start heading higher. And yet despite falling from a recent high of $80 down to below $73, gasoline prices have not abated. Just in the last two days wholesale gas has risen 15 cents while oil has remained flat.

Year over year, gas is up over 33% on average. That’s not going to do anything good for the so-called recovery. Word is that all those tankers sitting idle storing oil is being rapidly sold off, bringing down inventories. Chances are that the oil price will soon start rising as well.

Lower oil prices got some help from the recent dollar rally which now appears to be stalling. And with the summer driving season coming up, it looks like we’ll be facing $3.00 gasoline again.

Meanwhile, in Venezuela Hugo Chavez is working diligently to destroy that nation and turn it into a socialist wasteland, having recently devalued its currency by 50% and throwing merchants in jail who try to raise prices. Destroying business seems to be his goal, and along with that goes his oil industry, the production of which is down 33% from last year. Chavez is quite simply a madman, and it would not be at all suprising to see that nation explode or implode, bringing its current 2.4 mbd production off line. Now wouldn’t that do wonders for the price of fuel?


February 3, 2010 Posted by | Oil Updates | , , , | Leave a comment

Here We Go Again

There’s an old song of that name and its too bad I can’t attach a file of it. Anyway, there’s a huge amount of discussion about ridiculous gas prices, but I have yet to hear the word gouging. That is what it is since there is no shortage of gas yet other than panic buying in Texas. This  post is a heads- up on future gasoline  supply and price resulting from Ike. Don’t be fooled that its only a Cat 2, this  storm will do tremendous damage to  refining infrastructure. Continue reading

September 12, 2008 Posted by | Oil Updates | , , | Leave a comment