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Gas prices hit yet another record high
Source: CNN
Millions of Americans traveling this holiday weekend are being greeted by unprecedented prices at the gas pump.
The national average for regular gasoline rose to a fresh record of $4.62 a gallon on Monday, according to AAA. That’s up by a penny from Sunday and 44 cents more expensive than a month ago.
Gas prices are up sharply from last Memorial Day, when they averaged $3.05 a gallon, according to AAA.
Seven states are now averaging $5-a-gallon gas, with the latest being Illinois (rounded up from $4.996). New York and Arizona are just pennies away from hitting that milestone. And there are no states where gas prices average less than $4.10 a gallon.
The national average for regular gasoline rose to a fresh record of $4.62 a gallon on Monday, according to AAA. That’s up by a penny from Sunday and 44 cents more expensive than a month ago.
Gas prices are up sharply from last Memorial Day, when they averaged $3.05 a gallon, according to AAA.
Seven states are now averaging $5-a-gallon gas, with the latest being Illinois (rounded up from $4.996). New York and Arizona are just pennies away from hitting that milestone. And there are no states where gas prices average less than $4.10 a gallon.
Read more: https://www.cnn.com/2022/05/30/business/gas-prices-memorial-day/index.html
24 replies
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= new reply since forum marked as read
Its pushing $7.00 a gallon in the pacific northwest!
to purposely glut the market and depress the prices, partly to drive the U.S. fracking industry out of business (which it just about did back then), based on what price/bbl was needed for break-even and then trying to get it below that. It was to the point (and I posted this before), where there was so much oil on the market, they had to pay to store it - meaning the price/bbl was NEGATIVE.
That lasted a couple months and they are trying desperately to use this as cover to make up for it.
But Russia's oil isn't completely cut off and somehow no longer "on the market". It's still going to several European countries and of course their biggest buyer - China.
Exclusive: China quietly increases purchases of low-priced Russian oil
May 20, 2022 3:37 AM EDT Last Updated 10 days ago
By Chen Aizhu and Florence Tan
SINGAPORE, May 20 (Reuters) - China is quietly ramping up purchases of oil from Russia at bargain prices, according to shipping data and oil traders who spoke to Reuters, filling the vacuum left by Western buyers backing away from business with Russia after its invasion of Ukraine in February. The move by the world's biggest oil importer comes a month after it initially cut back on Russian supplies, for fear of appearing to openly support Moscow and potentially expose its state oil giants to sanctions. China's seaborne Russian oil imports will jump to a near-record 1.1 million barrels per day (bpd) in May, up from 750,000 bpd in the first quarter and 800,000 bpd in 2021, according to an estimate by Vortexa Analytics.
Unipec, the trading arm of Asia's top refiner Sinopec Corp (600028.SS), , is leading the purchases, along with Zhenhua Oil, a unit of China's defense conglomerate Norinco, according to shipping data, a shipbroker report seen by Reuters and five traders. Livna Shipping Ltd, a Hong Kong-registered firm, has also recently emerged as a major shipper of Russian oil into China, the traders said. Sinopec declined comment. Zhenhua and Livna did not respond to requests for comment. The firms are filling the hole left by western buyers after Russia's invasion of Ukraine, which Russia calls a "special military operation." The United States, Britain and some other key oil buyers banned imports of Russian oil shortly after the invasion.
The European Union is finalizing a further round of sanctions, including a ban on Russian oil purchases. Many European refiners have already stopped buying from Russia for fear of running afoul of sanctions or drawing negative publicity. Vitol and Trafigura, two of the world's biggest commodity traders, phased out purchases from Rosneft, Russia's biggest oil producer, ahead of an EU rule that came into effect on May 15 barring purchases unless "strictly necessary" to secure the EU's energy needs. "The situation began taking a drastic turn after the exit of Vitol and Trafigura that created a vacuum, which could only be filled by companies that can provide value and are trusted by their Russian counterparts," one Chinese trader, who asked not to be named, told Reuters.
The low price of Russia's oil – spot differentials are about $29 less per barrel compared with before the invasion, according to traders - is a boon for China's refiners as they face shrinking margins in a slowing economy. The price is well below competing barrels from the Middle East, Africa, Europe and the United States.China separately receives some 800,000 bpd of Russian oil via pipelines under government deals. That would bring May imports to nearly 2 million bpd, 15% of China's overall demand. For Russia, oil sales are helping to cushion the blow to its economy from sanctions.
(snip)
https://www.reuters.com/business/energy/exclusive-china-quietly-increases-purchases-low-priced-russian-oil-2022-05-20/
May 20, 2022 3:37 AM EDT Last Updated 10 days ago
By Chen Aizhu and Florence Tan
SINGAPORE, May 20 (Reuters) - China is quietly ramping up purchases of oil from Russia at bargain prices, according to shipping data and oil traders who spoke to Reuters, filling the vacuum left by Western buyers backing away from business with Russia after its invasion of Ukraine in February. The move by the world's biggest oil importer comes a month after it initially cut back on Russian supplies, for fear of appearing to openly support Moscow and potentially expose its state oil giants to sanctions. China's seaborne Russian oil imports will jump to a near-record 1.1 million barrels per day (bpd) in May, up from 750,000 bpd in the first quarter and 800,000 bpd in 2021, according to an estimate by Vortexa Analytics.
Unipec, the trading arm of Asia's top refiner Sinopec Corp (600028.SS), , is leading the purchases, along with Zhenhua Oil, a unit of China's defense conglomerate Norinco, according to shipping data, a shipbroker report seen by Reuters and five traders. Livna Shipping Ltd, a Hong Kong-registered firm, has also recently emerged as a major shipper of Russian oil into China, the traders said. Sinopec declined comment. Zhenhua and Livna did not respond to requests for comment. The firms are filling the hole left by western buyers after Russia's invasion of Ukraine, which Russia calls a "special military operation." The United States, Britain and some other key oil buyers banned imports of Russian oil shortly after the invasion.
The European Union is finalizing a further round of sanctions, including a ban on Russian oil purchases. Many European refiners have already stopped buying from Russia for fear of running afoul of sanctions or drawing negative publicity. Vitol and Trafigura, two of the world's biggest commodity traders, phased out purchases from Rosneft, Russia's biggest oil producer, ahead of an EU rule that came into effect on May 15 barring purchases unless "strictly necessary" to secure the EU's energy needs. "The situation began taking a drastic turn after the exit of Vitol and Trafigura that created a vacuum, which could only be filled by companies that can provide value and are trusted by their Russian counterparts," one Chinese trader, who asked not to be named, told Reuters.
The low price of Russia's oil – spot differentials are about $29 less per barrel compared with before the invasion, according to traders - is a boon for China's refiners as they face shrinking margins in a slowing economy. The price is well below competing barrels from the Middle East, Africa, Europe and the United States.China separately receives some 800,000 bpd of Russian oil via pipelines under government deals. That would bring May imports to nearly 2 million bpd, 15% of China's overall demand. For Russia, oil sales are helping to cushion the blow to its economy from sanctions.
(snip)
https://www.reuters.com/business/energy/exclusive-china-quietly-increases-purchases-low-priced-russian-oil-2022-05-20/
I can see if you have sudden large refinery "fires" caused by "rebel sabotage" or ships that suddenly "spring a leak" and are disabled or even sink... or an oil pipeline suddenly "breaks" spilling product out on the ground, then yeah, you have a reduction of product (supply) on the market.
But none of that is happening with respect to Russia. It's still pumping oil and and shipping it - just not to all the same places.
And THAT "speculative" part is what is causing the ridiculous prices because the supply hasn't really changed and has even increased with some of the actions the U.S. has been doing the past couple months.
This is why the House Energy and Commerce Committee had a hearing last month on the oil price gouging -
All of the companies are reporting "record profits" and the GOP's answer is to -
1.) Open the Keystone Pipeline (which is DOA and even if the project was restarted, it would take years to have anything flowing through it to the refineries in the Gulf)
2.) Drill Baby Drill, despite not even using over 9000 drill leases that they were already given access to
And I would add that before every single Memorial Day, regardless of what else is going on, the prices "always go up" and some of it has to do with the switch to the "summer blend" of gasoline.
Add to this the U.S. pumping out 1 million bbl/day out of the strategic oil reserve right now (with DOE, just under a week ago, announcing an additional 40.1 million bbls to be released)... AND the Administration even allowing E15 to be sold through the summer to help stretch the supply coming out of the U.S., you are pretty much left with spite pricing.
One of the problems they have discovered however, is the types of refineries that are actually still in service in the U.S. that can handle sour vs sweet crude, and that leaves an imbalance. And another problem to come is the upcoming hurricane season because anything that gets near the GOM is going to flame the prices out. This is why I'm watching Hurricane Agatha in case the remnants survive crossing a narrow part of the Yucatan peninsula and then reforms out in the gulf -
Link to tweet
NHC Eastern Pacific
@NHC_Pacific
Hurricane #Agatha expected to make landfall in southern Mexico later today. Weather conditions are already deteriorating and will worsen throughout the day. For more information, visit http://hurricanes.gov
7:40 AM · May 30, 2022
@NHC_Pacific
Hurricane #Agatha expected to make landfall in southern Mexico later today. Weather conditions are already deteriorating and will worsen throughout the day. For more information, visit http://hurricanes.gov
7:40 AM · May 30, 2022
Link to tweet
NHC Eastern Pacific
@NHC_Pacific
10 am CDT May 30: Hurricane #Agatha nearing the coastline of southern Mexico, landfall expected this afternoon. Here are the latest Key Messages. Visit http://hurricanes.gov for details.
Image
10:58 AM · May 30, 2022
@NHC_Pacific
10 am CDT May 30: Hurricane #Agatha nearing the coastline of southern Mexico, landfall expected this afternoon. Here are the latest Key Messages. Visit http://hurricanes.gov for details.
Image
10:58 AM · May 30, 2022
Link to tweet
National Hurricane Center
@NHC_Atlantic
8 AM EDT May 30- There is a medium chance of development by late this week from a large and complex low pressure area that is expected to develop over the southwestern Gulf of Mexico, Yucatan Peninsula, and the northwest Caribbean Sea. Follow the latest at http://hurricanes.gov
Image
7:34 AM · May 30, 2022
@NHC_Atlantic
8 AM EDT May 30- There is a medium chance of development by late this week from a large and complex low pressure area that is expected to develop over the southwestern Gulf of Mexico, Yucatan Peninsula, and the northwest Caribbean Sea. Follow the latest at http://hurricanes.gov
Image
7:34 AM · May 30, 2022
(sorry to pile all this in a post but I often bookmark threads like this for future reference
)which is something that varies from region to region and state to state, and is due to the vapor pressure of the gasoline that gets impacted by the temps, and thus there are different additives that are included in the gasoline mixes for summer vs winter.
I think people were confusing the "E15" (octane/ethanol) waiver for summer use with the "summer blend" change. "E15" is only available at a couple thousand gas stations nationwide.
Summer Gas: What’s Different in 2022?
By GasBuddy | April 29, 2022
(snip)
What is the difference between summer and winter blend gasoline?
In the warmer months, gasoline has a greater chance of evaporating from your car’s fuel system. This can produce additional smog and increased emissions. Refiners reduce the chance of gas evaporation in your car during the summer by producing gasoline blends that have lower Reid vapor pressure (RVP), or lower volatility. These blends vary from state-to-state, region-to-region due to RVP state regulations. They also vary by octane level.
In winter, gasoline blends have a higher Reid vapor pressure, meaning they evaporate more easily and allow gasoline to ignite more easily to start your car in cold temperatures. This blend is cheaper to produce, which results in lower gas prices at the pumps from late September through late April.
Cost for your wallet: According to NACS, higher-grade summer blend fuel can add up to 15 cents per gallon to the cost of your fill-up. This excludes the increased cost due to summer fuel demand, which can vary between 5-15c/gal, depending on the region. More stringent requirements (like California) can mean an even higher cost. Prices typically fall 10-30c/gal starting in mid/ late September through late November as gas stations switch to winter gasoline and demand for gasoline falls seasonally as we start to stay closer to home.
What’s different about E15/Unleaded 88 gas this summer?
You may have heard it on the news a few weeks ago. This year, President Biden has announced that the Environmental Protection Agency will issue an emergency waiver permitting year-round sales of E15 gasoline, which contains a 15% ethanol blend, to reduce the burden of rising fuel costs this summer. Commonly sold as Unleaded 88 at many gas stations around the U.S., this type of fuel is often able to be sold for cheaper than regular gasoline. So, while you will likely be able to purchase E15 this summer, and it sounds like a no-brainer to pay less, we recommend you consult your owner’s manuals before filling up on E15, especially to ensure you’re not doing something that could void your car’s warranty.
(snip)
https://www.gasbuddy.com/go/summer-gas-2022
By GasBuddy | April 29, 2022
(snip)
What is the difference between summer and winter blend gasoline?
In the warmer months, gasoline has a greater chance of evaporating from your car’s fuel system. This can produce additional smog and increased emissions. Refiners reduce the chance of gas evaporation in your car during the summer by producing gasoline blends that have lower Reid vapor pressure (RVP), or lower volatility. These blends vary from state-to-state, region-to-region due to RVP state regulations. They also vary by octane level.
In winter, gasoline blends have a higher Reid vapor pressure, meaning they evaporate more easily and allow gasoline to ignite more easily to start your car in cold temperatures. This blend is cheaper to produce, which results in lower gas prices at the pumps from late September through late April.
Cost for your wallet: According to NACS, higher-grade summer blend fuel can add up to 15 cents per gallon to the cost of your fill-up. This excludes the increased cost due to summer fuel demand, which can vary between 5-15c/gal, depending on the region. More stringent requirements (like California) can mean an even higher cost. Prices typically fall 10-30c/gal starting in mid/ late September through late November as gas stations switch to winter gasoline and demand for gasoline falls seasonally as we start to stay closer to home.
What’s different about E15/Unleaded 88 gas this summer?
You may have heard it on the news a few weeks ago. This year, President Biden has announced that the Environmental Protection Agency will issue an emergency waiver permitting year-round sales of E15 gasoline, which contains a 15% ethanol blend, to reduce the burden of rising fuel costs this summer. Commonly sold as Unleaded 88 at many gas stations around the U.S., this type of fuel is often able to be sold for cheaper than regular gasoline. So, while you will likely be able to purchase E15 this summer, and it sounds like a no-brainer to pay less, we recommend you consult your owner’s manuals before filling up on E15, especially to ensure you’re not doing something that could void your car’s warranty.
(snip)
https://www.gasbuddy.com/go/summer-gas-2022
I remember when my agency's fleet had some of the early "flex-fuel" cars that were designed with a preference for E15 and there was just a single gas station near orr office that had E15. Most other stations have octane grades/percentages of either 87 or 89 + 91 + 93 vs E15 which is "88".
This article explains it a little better I guess -
Why is it normal for gas prices to go up in the spring?
A switch to summer blend gasoline usually drives fuel costs up.
Author: Pauline Smith (KHOU)
Published: 5:36 AM CDT May 10, 2022
Updated: 6:10 AM CDT May 10, 2022
HOUSTON — Why is it normal for gas prices to go up at this time of year? It may not bring much comfort for Texas drivers paying nearly $4 a gallon for regular gas but a spring surge is a normal occurrence. The real problem this year is prices were already high when the surge started. A year ago the average prices for a gallon of gas in Texas was $2.66.
Every spring, oil refiners switch over to a summer blend of gasoline. In the summer, gas has a greater chance of evaporating from the car’s fuel system, producing more smog. Rules require fuel terminals to start selling only the summer blend by May 1, and gas stations have until June 1 to make the full transition. Since the summer blend is more expensive to produce, the price is passed on to drivers.
There is one difference this summer – E15 gasoline. The EPA is issuing a waiver allowing the higher blend of ethanol fuel to be sold during the warm weather months. Usually sold as unleaded 88 at the pump, E15 is cheaper than regular gasoline. Though GasBuddy.com does tell drivers to check your owner’s manual before filling up with E15 to make sure it doesn’t void your warranty.
https://www.khou.com/article/news/local/oil-gas/gas-prices-surge-spring/285-f3a12857-dc10-49da-987b-bc189ba18f2c
A switch to summer blend gasoline usually drives fuel costs up.
Author: Pauline Smith (KHOU)
Published: 5:36 AM CDT May 10, 2022
Updated: 6:10 AM CDT May 10, 2022
HOUSTON — Why is it normal for gas prices to go up at this time of year? It may not bring much comfort for Texas drivers paying nearly $4 a gallon for regular gas but a spring surge is a normal occurrence. The real problem this year is prices were already high when the surge started. A year ago the average prices for a gallon of gas in Texas was $2.66.
Every spring, oil refiners switch over to a summer blend of gasoline. In the summer, gas has a greater chance of evaporating from the car’s fuel system, producing more smog. Rules require fuel terminals to start selling only the summer blend by May 1, and gas stations have until June 1 to make the full transition. Since the summer blend is more expensive to produce, the price is passed on to drivers.
There is one difference this summer – E15 gasoline. The EPA is issuing a waiver allowing the higher blend of ethanol fuel to be sold during the warm weather months. Usually sold as unleaded 88 at the pump, E15 is cheaper than regular gasoline. Though GasBuddy.com does tell drivers to check your owner’s manual before filling up with E15 to make sure it doesn’t void your warranty.
https://www.khou.com/article/news/local/oil-gas/gas-prices-surge-spring/285-f3a12857-dc10-49da-987b-bc189ba18f2c
