And It's Not Even Summer: Gas Jumps 19 Cents In Two Weeks, Less Than 10% Below All Time High

[interestrateripoff]

http://www.zerohedge.com/article/and-its-not-even-summer-gas-jumps-19-cents-two-weeks-less-10-below-all-time-high

According to the latest Lundberg survey the average price for a gallon of gasoline in the United States has moved closer to $4, jumping more than 19 cents since mid-March to a level less than 10 percent below its all-time high. And it's not even peak driving season, which typically sees a seasonal jump of at least 15-20% from early spring levels. Per Reuters: " The Lundberg Survey said the national average price of self-serve, regular unleaded gas was $3.765 on Friday, up from $3.573 on March 18, and up 91.3 cents from $2.852 a year ago. Prices in several western U.S. cities are already above $4 per gallon, led by San Francisco at $4.13. Chicago was close behind at $4.11 a gallon, the survey said." What is not surprising is that demand saturation is starting to set in, meaning refinery margins are now going through the window: " The national average would have been higher had refiners and retailers not resisted passing on rising crude oil prices as customers grow less willing to pay what it takes to fill their gas tanks, analyst Trilby Lundberg said in an interview. "Demand has been falling at these prices," she said."

I wonder how many in the US are struggling to make ends meet and get to work.

Still at least we have a recovery......

[pilchardthecat]

$4 a gallon.

Even when you allow for their slightly smaller gallon, that's the sort of price we can only dream of.

[jonb]

$4 a gallon.

Even when you allow for their slightly smaller gallon, that's the sort of price we can only dream of.

Equivalent to 64.6p per litre. However, when you consider that American cars are much less efficient, they are paying more per mile, and as a it is a bigger country, they drive more miles.

[rantnrave]

Even when you allow for their slightly smaller gallon, that's the sort of price we can only dream of.

Is that for their slightly smaller cars...

[ken_ichikawa]

Equivalent to 64.6p per litre. However, when you consider that American cars are much less efficient, they are paying more per mile, and as a it is a bigger country, they drive more miles.

Same as in Russia 19 rubles a litre near Sochi. But the distances are 10-20 bigger.

[Kokeshi]

Equivalent to 64.6p per litre. However, when you consider that American cars are much less efficient, they are paying more per mile, and as a it is a bigger country, they drive more miles.

Indeed, my car in the US did about 14 to the gallon, same car here gets about 30..insurance premiums are astronomical over there so its far cheaper to run a car here.

[Executive Sadman]

In venezuala its 2 cents a gallon. In 1999 it was $8 a barrel. Saudi can profit from oil as low as $2 a barrel. Oil is traded by banks and speculators 40-50 times before it reaches the consumer. Make of that what you will.

Maintaining the giant squid and the rest of the vampire banking system aint cheap, someones got to bend over, and it seems transport gets the worst punishment.

[Executive Sadman]

Indeed, my car in the US did about 14 to the gallon, same car here gets about 30..insurance premiums are astronomical over there so its far cheaper to run a car here.

Best selling US vehicle 5.4v8 Ford f150 13mpg

Best selling UK vehicle 1.6 Ford focus 39mpg

[Timak]

Oil is traded by banks and speculators 40-50 times before it reaches the consumer. Make of that what you will.

Maintaining the giant squid and the rest of the vampire banking system aint cheap, someones got to bend over, and it seems transport gets the worst punishment.

There should be a ban in commodity trading for anybody but the end users.

Some Swiss Trading Fund was being hailed in the Sunday Times as all 400 staff were about to get £64m each in bonuses, they specialise in trading in commodities by which they seem to mean using massively leveraged bets to buy up the worlds supply of oil/cocoa etc and then selling them on to the people who need them at vastly inflated prices. This was described as "wealth creating" in the Times. I call it extortion.

[evictee]

There should be a ban in commodity trading for anybody but the end users.

What commodities would that rule you out from trading then?

[Timak]

What commodities would that rule you out from trading then?

By end users I mean people who make stuff out of the commodities.

There is no earthly reason why I should be able to trade 400 tonnes of unrefined cocoa when I have no intention of buying it to use.

[The Ayatollah Buggeri]

Indeed, my car in the US did about 14 to the gallon, same car here gets about 30..insurance premiums are astronomical over there so its far cheaper to run a car here.

My other half pays $750 a year to insure her boring, ordinary, eight year-old Nissan saloon in AK. I pay less than half that to insure my similarly-aged Fiesta here, and all the other factors are pretty much equal - we're the same age, have a similar educational background, occupation, etc. etc.

[ken_ichikawa]

By end users I mean people who make stuff out of the commodities.

There is no earthly reason why I should be able to trade 400 tonnes of unrefined cocoa when I have no intention of buying it to use.

Solution is simple then, if you want to trade coca oil or whatever YOU MUST accept delivery. No ifs no buts if you buy it then you take delivery.

[Rare Bear]

My other half pays $750 a year to insure her boring, ordinary, eight year-old Nissan saloon in AK. I pay less than half that to insure my similarly-aged Fiesta here, and all the other factors are pretty much equal - we're the same age, have a similar educational background, occupation, etc. etc.

Could it be that US lawyers are better at milking the system than British lawyers?

[evictee]

There is no earthly reason why I should be able to trade 400 tonnes of unrefined cocoa when I have no intention of buying it to use.

What if you wanted to buy all oil you'll be using for the rest of life at today's prices? Should that be allowed?

[jonb]

There should be a ban in commodity trading for anybody but the end users.

Some Swiss Trading Fund was being hailed in the Sunday Times as all 400 staff were about to get £64m each in bonuses, they specialise in trading in commodities by which they seem to mean using massively leveraged bets to buy up the worlds supply of oil/cocoa etc and then selling them on to the people who need them at vastly inflated prices. This was described as "wealth creating" in the Times. I call it extortion.

They don't actually take delivery of any of this stuff, so they aren't preventing any of it getting to peoples' dinner plates. What they are doing is taking and placing side bets on the market price, which no more affects that market price than people at Ladbrokes betting on the Grand National affects the outcome of that race.

The commodity producers use their services because they get a guaranteed selling price for their product. That makes it easier for them to budget the costs associated with making it which they have to incur before they can sell it. The commodity buyers use their services again because it helps with budgeting and enables them to set prices in advance. Other people can use it for gambling purposes. That is their choice. The bank balances their books by having equal numbers of bets in both directions and make their money on the margin.

If these banks didn't exist, then the community producers would have to go round making individual forward contracts with individual producers and that would cost a lot more to arrange.

[jonb]

Could it be that US lawyers are better at milking the system than British lawyers?

US medical expenses in the event of an accident are much more expensive than British medical expenses. That is the main reason for the difference.