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National gasoline prices - up $0.50 just in the last month - have hit the $3.75-$4.00 zone known...

National gasoline prices - up $0.50 just in the last month - have hit the $3.75-$4.00 zone known in the past for being "problematic" for stocks, says BTIG's Dan Greenhaus. The most worrisome part, he says, is the increase has come before the demand of spring driving season arrives. Instead of worrying, why not go with the flow and buy the refiners?
Comments (21)
  • jnpfl
    , contributor
    Comments (89) | Send Message
     
    I couldn't agree more. When my wife asked me if I had noticed how much gas prices went up lately I replied, yes, isn't it great! Long PSX, CVX, COP. Why fight it when you can join?
    27 Feb 2013, 03:28 PM Reply Like
  • Tony Petroski
    , contributor
    Comments (6373) | Send Message
     
    The copywriter has wit:

     

    "Instead of worrying, why not go with the flow and buy the refiners?"

     

    Because...that would not be green...it would be...icky...

     

    The copywriter makes a great point.
    27 Feb 2013, 03:38 PM Reply Like
  • BTatters
    , contributor
    Comments (4) | Send Message
     
    Have you seen wholesale gasoline prices in the last couple of days. Today alone they are down almost 4%, and in the last week and a half they have given up most of this YTD rally you speak of.
    27 Feb 2013, 04:18 PM Reply Like
  • zorro2828
    , contributor
    Comments (535) | Send Message
     
    Long PSX, HFC, VLO and TSO plus CLMT, EOG and COP
    27 Feb 2013, 05:03 PM Reply Like
  • DMCstrategies
    , contributor
    Comments (66) | Send Message
     
    Why would you be long 7 different companies that all do the same thing, and the share prices are basically correlated? That makes no sense, unless you really like paying commissions.
    28 Feb 2013, 01:05 AM Reply Like
  • deercreekvols
    , contributor
    Comments (5137) | Send Message
     
    I have been paying this "problematic" zone price for months in western NY. Prices are normally $0.30 above the national average here. No reasons for the high prices, other than outrageous NY State taxes.

     

    I am long COP and looking to add TSO in the not too distant future.
    27 Feb 2013, 05:43 PM Reply Like
  • rasanders22
    , contributor
    Comments (529) | Send Message
     
    You get what you vote fore. Well mabye not you directly, but your state.
    28 Feb 2013, 01:28 AM Reply Like
  • SoldHigh
    , contributor
    Comments (995) | Send Message
     
    Higher gas prices are what the people voted for when they reelected Obama.
    27 Feb 2013, 05:46 PM Reply Like
  • skyraider
    , contributor
    Comments (448) | Send Message
     
    really......you want to back up your statement with facts soldhigh?
    27 Feb 2013, 06:11 PM Reply Like
  • rasanders22
    , contributor
    Comments (529) | Send Message
     
    Obama is aginst the Keystone pipeline which would increase the supply of oil globally. The larger the supply, the lower the price.
    28 Feb 2013, 01:29 AM Reply Like
  • ricardorubiosr
    , contributor
    Comments (13) | Send Message
     
    Not completely true. Trices of finished gas do not depend entirely on oil prices. The main factor are the greedy money and power ambitious refiners. That is an oligopoly who control the production of the finish product (gasoline) and control prices. they do not depend on the President. Depend on us who allow tose big refinery companies to exploit us.
    11 Mar 2013, 04:56 AM Reply Like
  • Tom Guttenberger
    , contributor
    Comments (717) | Send Message
     
    Haven't crunched the numbers, but crack spreads do seem amazingly frothy right now, especially considering the season.

     

    I personally would avoid refiners at this juncture, looking for a contraction. Once WTI becomes a bit more attune to reality, refiners will be stuck between demand destruction and a hard place.
    27 Feb 2013, 08:58 PM Reply Like
  • zorro2828
    , contributor
    Comments (535) | Send Message
     
    avoid refiners to your own financial peril.. especially PSX, HFC and CLMT

     

    Frothy? What demand destruction.. export is strong
    28 Feb 2013, 08:23 AM Reply Like
  • Tom Guttenberger
    , contributor
    Comments (717) | Send Message
     
    You missed my point. Crack spread HAVE BEEN strong, and refiners HAVE DONE well, yes. But they are historically very high right now, and to think that this will continue seems unrealistic.

     

    I am very bullish on energy and oil in general, and when the underlying price of oil rises, the crack spreads and therefore the refiners' margins will need to contract unless people continue to buy the same amount of $5, $6, $7, etc., gasoline.

     

    From here: I would take profits and pat yourself on the back for the successful refiner trade. I would still consider major E&P/integrateds, but am still iffy on them because of the increasing production cost and difficulty in extracting the oil. And I am most bullish on the commodity spot price, pure resource plays, and extraction technology companies.
    28 Feb 2013, 09:33 AM Reply Like
  • DMCstrategies
    , contributor
    Comments (66) | Send Message
     
    Great call Tom,

     

    VLO down 8%, HFC down 11% from the close of Feb. 27/13, which is when this market current hit the wire.
    2 Apr 2013, 05:52 PM Reply Like
  • stevewcpa
    , contributor
    Comments (8) | Send Message
     
    There's money to be made. That's why prices are up. Greed is good.
    27 Feb 2013, 09:33 PM Reply Like
  • Nolesince87
    , contributor
    Comments (258) | Send Message
     
    Yes, GO LONG ENERGY! Because we all know input energy costs have noooottthing to do with the cost of production, right? I think Goldman Sachs and the rest of the "investment" Cartel can't go a day without laughing at everybody.... they love the fact that the more they push up stock prices the more you guys buy!

     

    At least I'm hoping you will be smart enough to realize that when the NEXT stock market collapse happens, to stay away from stocks for at least a decade, maybe two.
    28 Feb 2013, 12:57 AM Reply Like
  • jerome681
    , contributor
    Comments (6) | Send Message
     
    When gasoline becomes cheap at the pump i hedge my usage by buying UGA. it has worked well the last 4 years
    28 Feb 2013, 03:00 AM Reply Like
  • Awfully Digital
    , contributor
    Comments (4) | Send Message
     
    It's quite funny to hear someone impute higher gas prices to any particular U.S. Administration; oil prices are set on the world market, and the development the U.S. business community champions in emerging and developed markets, along with various issues of supply and refinement are what sets the price at the pump. In any cases, gasoline prices will continue to rise as demand grows, supply lessens, and climate change and environmental degradation require an international response (unless, of course, you'd like to breathe air from a tank, keep a set of flippers with you for swimming around New York City, and use other measures to keep the impact of 6 billion people on one planet at bay). It's been said that the only people who don't think unsustainable population growth is a problem, are economists and crazy people.

     

    Which one are you?
    28 Feb 2013, 05:02 AM Reply Like
  • larry2u
    , contributor
    Comment (1) | Send Message
     
    @BTatters ... but savings not passed on to the poor little guy as usual!!
    so maddening that they get away with this form of robbery and NO ONE
    cares!!!
    28 Feb 2013, 06:56 AM Reply Like
  • zorro2828
    , contributor
    Comments (535) | Send Message
     
    Buy the freaking stocks!
    28 Feb 2013, 08:24 AM Reply Like
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