Independent gasoline station owners in the Los Angeles area are beginning to shut their pumps...

Independent gasoline station owners in the Los Angeles area are beginning to shut their pumps because of supply shortages that have driven wholesale fuel prices to record highs. Spot gasoline in LA has surged $0.70 this week to $3.95/gallon, a record $1.15 premium vs. Nymex futures. Costs should start falling as Exxon's 150K bbl/day Torrance refinery returns to normal operations.

Comments (6)
  • june1234
    , contributor
    Comments (4348) | Send Message
    oil futures continue coming down and gas prices going up; that makes a lot of sense
    3 Oct 2012, 06:44 PM Reply Like
  • haruglory12
    , contributor
    Comments (54) | Send Message
    It makes plenty of sense if you understand that you cannot put crude oil in your car. Crude oil doesn't just magically turn into gasoline. Btw look at the gasoline futures prices based on contract months and not spot gasoline price.
    3 Oct 2012, 08:18 PM Reply Like
  • Hendershott
    , contributor
    Comments (1752) | Send Message
    We produce more oil domestically than we have in a long time. Consumers and businesses conserve energy. We still have a flood of tar sands crude arriving daily. Cushing is busting at the seams and adding more storage. We did drill drill drill and thanks to at least one absolutely visionary geologist in the Baaken, found an elephant. So, what does the consumer get out of this? $4.35 gasoline. Crude may be stranded to some extent in Cushing and we have resorted to trucks, trains and barges to move it around, but distillates are not stranded. From the gulf refineries, the US has become a major exporter of gasoline, diesel and other distillates. The net effect, is we pay Brent like prices for gasoline no matter how much we produce or conserve. Very frustrating for the consumer.
    3 Oct 2012, 06:59 PM Reply Like
  • eagle1003
    , contributor
    Comments (1886) | Send Message
    Anyone believe that once Natural Gas is being exported, the consumer won't be paying world price here in North America just as we are paying world price for gasoline?
    3 Oct 2012, 09:02 PM Reply Like
  • piggysun
    , contributor
    Comments (244) | Send Message
    Gasoline in US is almost the cheapest in the world. NG is even cheaper.
    4 Oct 2012, 01:54 AM Reply Like
  • Hendershott
    , contributor
    Comments (1752) | Send Message
    For gasoline, it's mostly taxes that make it expensive in other countries. some countries subsidize and have very cheap gas. In Europe they tax the Bejeezus out of it. NG is cheap because it's stranded. If we develop enough LNG export capability, that would change. With NG, however, shale gas is not likely just a phenomenon of the geology in the US. It's very likely that there are huge NG deposits in a lot of places in the world. We could be developing a capability to export LNG into a market the is substantially different from what it is now.
    4 Oct 2012, 02:10 PM Reply Like
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