California gas prices headed up again...

[WarGamer]

I saw $6/gal again tonight...

Pricey station, ritzy part of town but it's still mid-5's elsewhere too...

OPEC has to give a favor to the GOP I guess...

https://www.latimes.com/business/story/2022-09-21/gas-prices-are-rising-with-los-angeles-average-jumping-8-5-cents-overnight

Los Angeles County’s average gas price rose Wednesday to $5.545 for a gallon of self-service regular, up 8.5 cents from the day before, AAA data show, as refinery problems accelerated increases that began nearly three weeks ago.

Nationwide, a 99-day run of falling gasoline prices — a streak that gave consumers a glimmer of hope that red-hot inflation might be cooling — has ended, with pump prices still much higher than a year ago.

[a kennedy]

1. Yup, up here in South East MN.

[former9thward]

2. Up about 70 cents a gallon in the last month in the Phoenix area.

[AZSkiffyGeek]

5. I paid 3.55 on Labor Day near Metro Center

My wife paid 4.19 yesterday in Tempe.

[former9thward]

9. I am on the Tempe/Mesa border and it got down to 3.49 maybe 3 or 4 weeks ago.

I paid 4.19 today.

[ChazII]

26. They did go down for a brief period

but you are right the prices are rising again.

[Ron Green]

3. It's never been high enough to keep people from using a LOT of it...

…You know, sitting with the engine idling while reading a phone, driving alone to work in the next town, using the F-250 for a 2-mile trip.

Stuff like that shows us gasoline is still dirt cheap.

[jimfields33]

11. Until public transportation is plentiful in ALL areas, you will see driving

We don’t even have bus service where I live. And I’m not in the boonies.

[mike_c]

4. it was still $6.10 when I was on the North Coast a couple weeks ago

At least up there I don't think it ever came down.

[alwaysinasnit]

6. I wonder how many refineries are down for "maintenance?"

The price of crude is falling...


https://www.rte.ie/news/business/2022/0923/1324990-oil-prices-edge-down-recession-fears-back-in-focus/

Oil prices dumped today to trade at levels not seen since January as the dollar index hit its strongest level in two decades and on demand fears, as rising interest rates risked tipping major economics into recession.

Brent crude futures fell $3.74, or 4.13%, to $86.72 a barrel by 1313 GMT. US West Texas Intermediate (WTI) crude futures were also down by $3.98, or 4.77%, to $79.51 a barrel.

Front-month Brent and WTI contracts were down 5.28% and 6.80% respectively over the past week.

Global equities hit a two-year low on Friday while the dollar index reached its highest level in two decades, putting downward pressure on oil.

[ProfessorGAC]

14. None Here

In the midwest.
Besides, turnarounds in a refinery are not a pricing scam.
They are absolute necessary to maintain efficiency & in many cases, mandated by regulations to minimize chances of relief system failures, hence environmental emissions.
There are also regulations that cover testing, recalibration or replacement of other critical safety devices.
And, turnarounds are VERY expensive. The refiner is lucky to see price increases sufficient to maintain margins.
Generally, a turnaround is a loss center & considered the cost of doing business. They are not profit sources.

[alwaysinasnit]

18. Thank you Professor. To continue the info you provided, I found this article interesting.

https://www.npr.org/2022/06/26/1107265390/refinery-shortage-high-gas-prices-russia

snip...

Refining capacity in the U.S. is about a million barrels a day below what it was prior to the pandemic. That's left the country unable to meet its fuel needs as more people are commuting, traveling and driving as they emerge from the throes of the pandemic.

So, where did all the refineries go?

Some refineries shuttered during the pandemic-induced recession in 2020, when demand for gasoline took a nosedive. Not all of those refineries have come back online. The U.S. had five fewer refineries at the beginning of this year that at the beginning of 2020.

When the pandemic hit and demand for oil evaporated during the recession, refineries took a big financial hit when the price of gasoline plummeted. Some refiners threw in the towel. They said the numbers just didn't work, and closed up shop.

"When you're losing money on doing it, what do you do? You stop making it. And that's when you shut down refineries," says Denton Cinquegrana, chief oil analyst at Oil Price Information Service.

[ProfessorGAC]

27. Article Is Slightly Misleading

For accounting purposes, capacity is calculated to include the planned downtime for major maintenance events.
The number used is 92%, or 48 weeks.
Then, burden (variable operating costs per unit of production) is based on 95% uptime, at 95% of nameplate throughput.
There is, and always has been, excess capacity and I think NPR either didn't understand these things or fell for somebody's doublespeak.
There is no shortfall of supply here in the Midwest. In fact there's still unused capacity.
I'd be hard to convince it's substantially different anywhere else in North America.
I think the issue is still manipulation at the market stage to protect long term future holders that overreacted in the recent past.
If we're looking at refiners & trying to apply simple supply & demand principles, we'll never figure out what's really causing the disconnect between crude & refined prices.

[alwaysinasnit]

30. Thanks for the insights Professor!

[kysrsoze]

7. We're all getting hosed in CA. Oil dropped below $80 a barrel this week. Gas taxes don't account..

for the prices we're paying here.

[Sympthsical]

8. It kind of never really went down

It ticked down from the super highs, but then kind of just lodged there since the end of July or so. As everyone was talking about their falling prices, I kept scratching my head. California is its own thing with gas prices, but even then it felt like we should've gotten more relief than we did.

Now it's creeping up again. $5.20 at my Costco, which means it's $5.50-$5.60 at a "regular" station.

I mean, it's fine for me. Partner's job gives him a per diem for gas, because he often has to drive to various locations in the region. I just use his car for various errands some of the time. Less fun for everyone else, though.

We're supposed to be getting that inflation rebate sometime soon. Between the two of us, we should net about $400. Which is nice.

[wishstar]

10. Gas should come down again with the almost 5% drop in crude oil yesterday

due to markets expecting economic slowdown.

Latest hurricane models also show the next hurricane is likely to veer east out of Gulf into central Florida below Tampa sparing the refineries of the Gulf so less chance of shutdown of production.

[msongs]

12. ge that's higher than honolulu, here 5.00 to 5.40 xcpt costco 4.59 nt

[GreenWave]

13. Trump's oil buddies have to come through.

Otherwise those attack ads look stupid.

[ProfessorGAC]

15. Went Down In Illinois

The market people are projecting another 3 to 7 cents by Tuesday. (Saw that on wgn news this morning. )

[BeerBarrelPolka]

16. As of yesterday

As of yesterday, it went up $.50 in McHenry County, Il. since last Sunday.

[ProfessorGAC]

24. Not Here

We're in the the southwest edge of Chicagoland.
Probably 90 miles from you.
Prices gradually falling for 8 weeks at least.

[BeerBarrelPolka]

25. Cool

They dropped for a while over here. Nothing really major. But I was surprised yesterday when I needed to gas up to drive to Oak Lawn (my luck). And Gasbuddy is of no help at all because we seem to have a couple of trolls that love to post the wrong prices. Gasbuddy does nothing about it either.

[Yavin4]

17. Hmmm...those Fed rate hikes don't seem to be working.

Corporate Greed is going to Corporate Greed no matter what.

[bluestarone]

19. Hmm, almost like they want people pissed off enough to vote against the Democrats?

I honestly feel that's the reason for higher fuel prices. They will do ANYTHING to win in November!

[Texasgal]

20. Just paid 2.98 here In Austin. TX

Some stations and areas of town a bit higher @ 3.09.

[First Speaker]

21. dropped twelve cents here in southern CT in the last 48 hours...

[maveric]

22. Up $1.50 a gallon in one month in San Diego.

Went shopping this morning, $5.39. Went out five hours later and it was $5.69.
That fast.

[madinmaryland]

23. I paid $2.89 just south of Hartford,CT yesterday.

[brooklynite]

28. What does OPEC have to do with it? Crude oil prices are dropping.

[roamer65]

29. $3.80 today in metro Detroit.