atomic_fungus (atomic_fungus) wrote,
atomic_fungus
atomic_fungus

#5272: That being the case, why are we paying $2.40 a gallon for gasoline?

There's a worldwide glut of refined gasoline.

Here's what happened: around February (as you may recall) the price of oil hit its nadir and gasoline was cheap, cheap, cheap. I paid something like $1.28 a gallon for it in Indiana; it was a bit higher in the Fungal Vale but not that much higher.

Then rigs started going out of production and Chinese demand rose, allegedly, which hauled the price up by more than a dollar, to flirt with $3 a gallon before settling slowly to its present level.

But:
...[W]hat many thought was stable Chinese domestic demand, ended up being just the filling of every possible container, not to mention the now almost full SPR, in lieu of actual domestic commodity demand. As such, China's sagging demand as the economy slows once more has left the country’s oil and metal refiners with huge surpluses they are increasingly looking to sell abroad.
And so now only do we still have a glut of crude oil; we have a glut of refined products.

"There is much more on this topic," the article's penultimate paragraph concludes, "but at its core it is a very simple story of too much supply and not enough demand."

SO WHY THE HELL DOES GASOLINE COST TWICE AS MUCH AS IT DID IN FEBRUARY?
Subscribe

  • #9312: FLAT as FLAT can be

    I'm just really tired today. Yesterday's fun really took it out of me. Good thing we went, though, because it's hotter today. After the last post I…

  • #9311: What are the odds?

    There is a picture floating around showing the bullet passing Trump's head. It's in this Zerohedge post about the event. Time of flight for a…

  • #9310: Making him more popular

    A psychotic communist antifa pussy tried to assassinate Trump today. Trump was injured slightly--only slightly--and raised a defiant fist as SS…

  • Post a new comment

    Error

    default userpic

    Your reply will be screened

    Your IP address will be recorded 

    When you submit the form an invisible reCAPTCHA check will be performed.
    You must follow the Privacy Policy and Google Terms of use.
  • 0 comments