GR Gas Prices may take another hike soon, thanks to a new “vigorous” tropical system that is developing in the Carribean. At this writing at 2:20pm, markets are up SHARPLY. Gasoline prices are up 11 cents a gallon, even after the DOE report that was positive.
The DOE report came back extremely good for gasoline, however, it was such good news, stock traders and the market have rejected its accuracy. The Dept of Energy reported that gasoline inventories unexpectedly climbed 4.4 million barrels (exactly the amount of fuel the U.S. uses in 3.5 days). The American Petroleum Institute, another firm that follows inventories also said gasoline inventories gained, but they said 2.2 million barrels (it is noteworthy that these two reports don’t necessarily have to be the same- just the fact that both reports have large gains is the factor to look at). Crude inventories fell as expected, and REMAIN “well above” the high end of the five year moving average. Gasoline inventories are no longer “much below” average, they are now just 2.9% lower than one year ago, and are in the “lower” range of the five year average.
What is in the future?
All eyes are on the National Hurricane Center and I await news on this current storm. I have been tracking it since the NHC has, it developed about two days ago, but it still has not developed into a major event. Gasoline traders are VERY worried about this storm. This could really setback the repair of facilities or effect other facilities if it develops into a significant storm.
As predicted, gas prices did rise today, although 3 cents higher than I anticipated.
It is my opinion that at this point, this Prices may hike again shortly, and we could be looking at $3 a gallon again soon. This storm is the #1 concern. Hurricane season needs to end now.
I commend those who have e-mailed me telling stories of conserving fuel. It takes a lot of sacrifice, but we’re making progress! Everyones efforts help! Avoid unwarranted trips, and carpool! The U.S. will be in shock if we continue to use gasoline like we do.
Please continue to conserve.