Sitting here wondering if Israel will pummel Iran makes you say "Yea, pound them into the stone age!". But unintended consequences set in quickly as you realize that Iran controls a vital oil passageway in the Hormuz strait. Sure it would be neat to see Iran tuck tail and yield to a superior power, but when that happens the cost per barrel of oil will climb. Thus everything within the US will go up in price. Trucks need diesel to transport food, so that commodity will increase overnight. You think you are paying a lot now, just wait until oil is in short supply. Get thinking NOW about how you will fare if some grocery stores no longer carry your favorite cans of veggies or meats. How will you compensate? Now is the time to think about it. Plus, will you be able to fill up your gas hog of a 4 x 4 truck to go to work? Might cost you close to two hundred dollars for a fill up. Think about that.
Biden administration likely to tap oil from Strategic Petroleum Reserve ahead of summer demand
Lucia Kassai, Bloomberg April 15, 2024
(Bloomberg) – The Biden administration will likely need to tap oil from the country’s emergency reserves to counter a spike in gasoline prices and amid inflation fears during the summer driving season.
The release of oil from the Strategic Petroleum Reserve is in the cards as motor fuel demand is expected to hit a new post-pandemic high with millions of Americans preparing to hit the roads during the summer, when demand peaks, said Vikas Dwivedi, a global oil and gas strategist for Macquarie Group.
“The government will have to release oil from the SPR with a lot of aggressiveness to tame prices,” Dwivedi said in a phone interview. “There are not many tools available and this is one of the most effective.”
Gasoline prices soared 17% this year fueled by a rally in oil prices, which have gained 18% in the same period as supply disruptions tilted global balances into a deficit. Geopolitical tensions in the Middle East, where more than a third of the world’s oil is produced, coupled with production cuts from OPEC+ and its allies and Mexico’s decision to slash oil exports are weighing on the market.
Several factors stand to affect demand and tightening oil supplies as drivers prepare to get behind the wheel this summer. High mortgage rates are keeping would-be homebuyers off the market during what’s typically the busiest season for purchases, suggesting Americans will spend more in entertainment and travel, Dwivedi said.
Oil demand is expected to rise while fuelmaking may fall short of expectations as years of delayed maintenance by refiners could lead to breakdowns. And Texas is warning consumers about a possible power emergency this week amid high temperatures, bringing back memories of last year’s record temperatures that forced refineries to curtail fuel production for fear of overheating.
Demand for gasoline is being watched closely in the world’s top oil-consuming nation as rising prices at the pump may spur inflation. The Energy Information Administration recently revised up its 2024 forecast for retail gasoline to $3.60 a gallon from $3.50.
High oil prices prompted the Energy Department to shelve plans to replenish the emergency reserves earlier this month. Stockpiles have been slowly inching up in the past year but still stand near a 40-year low after the unprecedented release of 180 million barrels in 2022 following Russia’s invasion of Ukraine.
https://twitter.com/zerohedge/status/1780304180457906455
zerohedge
@zerohedge
And there it is
SENIOR WHITE HOUSE ADVISOR: US COULD RELEASE MORE SPR OIL TO KEEP GAS PRICES LOW
Quote
zerohedge
@zerohedge
·
12h
White House Will Do What It Can to Keep Gas Prices Down: Podesta
Another SPR drain coming
7:36 AM · Apr 16, 2024
I believe Biden has used up about 80% of that reserve, thus the only thing the administration can do is squeeze a wee bit more out of it before it dries up. It should last throught the summer if there is not a huge demand. But folks will want to travel. Heck, even if it SPR was totally full, a conflict in the middle East will still send the price of crude oil up.
Sitting here wondering if Israel will pummel Iran makes you say "Yea, pound them into the stone age!". But unintended consequences set in quickly as you realize that Iran controls a vital oil passageway in the Hormuz strait. Sure it would be neat to see Iran tuck tail and yield to a superior power, but when that happens the cost per barrel of oil will climb. Thus everything within the US will go up in price. Trucks need diesel to transport food, so that commodity will increase overnight. You think you are paying a lot now, just wait until oil is in short supply. Get thinking NOW about how you will fare if some grocery stores no longer carry your favorite cans of veggies or meats. How will you compensate? Now is the time to think about it. Plus, will you be able to fill up your gas hog of a 4 x 4 truck to go to work? Might cost you close to two hundred dollars for a fill up. Think about that.
I think it's time to prepare for the months ahead, you can be sure things will slowly deteriorate econmonically & in other areas such as _ _ _ _...
Expensive everything...gas up in ohio 375 from 337
Can confirm, paid 3.75 in Ohio this morning.
Biden administration likely to tap oil from Strategic Petroleum Reserve ahead of summer demand Lucia Kassai, Bloomberg April 15, 2024 (Bloomberg) – The Biden administration will likely need to tap oil from the country’s emergency reserves to counter a spike in gasoline prices and amid inflation fears during the summer driving season.
The release of oil from the Strategic Petroleum Reserve is in the cards as motor fuel demand is expected to hit a new post-pandemic high with millions of Americans preparing to hit the roads during the summer, when demand peaks, said Vikas Dwivedi, a global oil and gas strategist for Macquarie Group.
“The government will have to release oil from the SPR with a lot of aggressiveness to tame prices,” Dwivedi said in a phone interview. “There are not many tools available and this is one of the most effective.”
Gasoline prices soared 17% this year fueled by a rally in oil prices, which have gained 18% in the same period as supply disruptions tilted global balances into a deficit. Geopolitical tensions in the Middle East, where more than a third of the world’s oil is produced, coupled with production cuts from OPEC+ and its allies and Mexico’s decision to slash oil exports are weighing on the market.
Several factors stand to affect demand and tightening oil supplies as drivers prepare to get behind the wheel this summer. High mortgage rates are keeping would-be homebuyers off the market during what’s typically the busiest season for purchases, suggesting Americans will spend more in entertainment and travel, Dwivedi said.
Oil demand is expected to rise while fuelmaking may fall short of expectations as years of delayed maintenance by refiners could lead to breakdowns. And Texas is warning consumers about a possible power emergency this week amid high temperatures, bringing back memories of last year’s record temperatures that forced refineries to curtail fuel production for fear of overheating.
Demand for gasoline is being watched closely in the world’s top oil-consuming nation as rising prices at the pump may spur inflation. The Energy Information Administration recently revised up its 2024 forecast for retail gasoline to $3.60 a gallon from $3.50.
High oil prices prompted the Energy Department to shelve plans to replenish the emergency reserves earlier this month. Stockpiles have been slowly inching up in the past year but still stand near a 40-year low after the unprecedented release of 180 million barrels in 2022 following Russia’s invasion of Ukraine.
Lead image source: Anna Moneymaker/Getty Images
©2024 World Oil, © 2024 Gulf Publishing Company LLC. Copyright © 2022. All market data is provided by Barchart Solutions.
Only for a few more months.
https://twitter.com/zerohedge/status/1780304180457906455 zerohedge @zerohedge And there it is SENIOR WHITE HOUSE ADVISOR: US COULD RELEASE MORE SPR OIL TO KEEP GAS PRICES LOW Quote zerohedge @zerohedge · 12h White House Will Do What It Can to Keep Gas Prices Down: Podesta Another SPR drain coming 7:36 AM · Apr 16, 2024
I believe Biden has used up about 80% of that reserve, thus the only thing the administration can do is squeeze a wee bit more out of it before it dries up. It should last throught the summer if there is not a huge demand. But folks will want to travel. Heck, even if it SPR was totally full, a conflict in the middle East will still send the price of crude oil up.
They love it when a plan comes together. Ouch!