Weekly Gasoline Price Update: Up Another Three Cents - May 27, 2015
It's time again for our weekly gasoline update based on data from the Energy Information Administration (EIA). Rounded to the penny, the price of Regular and premium both rose three cents. This is the sixth week of price increases after six weeks of little change. According to GasBuddy.com, California has the highest average price for Regular at $3.75, and its averaging $3.93 in Los Angeles. South Carolina has the cheapest at $2.42.
How far are we from the interim high prices of 2011 and the all-time highs of 2008? Here's a visual answer.
The next chart is a monthly chart overlay of West Texas Light Crude, Brent Crude and unleaded gasoline end-of-day spot prices (GASO).
WTIC closed today at 58.03 a barrel, well off its 42.43 interim closing low on March 17th, but now hovering in a relatively narrow range.
The volatility in crude oil and gasoline prices has been clearly reflected in recent years in both the Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE). For additional perspective on how energy prices are factored into the CPI, see What Inflation Means to You: Inside the Consumer Price Index.
The chart below offers a comparison of the broader aggregate category of energy inflation since 2000, based on categories within Consumer Price Index (commentary here).
Here are some additional commentaries related to gasoline prices:
Disclosure: None.
Take this is into consideration, it just seem perfect timing that we are having oil glut, just as when sanctions and war affecting most of the key producers, like Russia, Iran and Iraq. US shale came into play in such a big way. Do anyone see the picture?
I really believe Saudi and the rest of Middle East oil producers are the biggest suckers in this. Typically in view of the above, situation, oil price would sky rocket.
If US has so much oil, US can simply stop importing. Yet US remain as the world biggest importer. Why are our pump price kept going up? (Even China too) US had corner itself into a position with our handling of world affair, the only solution is to get Opec into a price war and have them pumping like there is no tomorrow. As it is the only, cheapest and most viable solution, as anyone in oil will know that once the infrastructures are in place for fossil fuel, cost is minimum. The rest of the sources in term of cost of producing is too high, slow and low quality (produced less fuel per barrel).
Oil Glut? If I am in the position of OPEC and Iran, stop pumping for 3-6 months. Can anyone imagine what will be the oil price? I estimate at least USD 250 to 280 per barrel. For all the failures of Obama, I believe the oil situation creat by US is simply brilliant, it help our allies in Europe, world getting supplied at a lower price, except China benefitted the most with Russia and Middle East.