Gas & Oil News

The National Average for Unleaded Regular moved up 4/10th's of a Cent to $2.238 and crude oil dropped $2.05 to $49.72 a barrel. The push and pull between the price of gasoline and the price of crude oil sometimes seems confounding. But when you take all things into consideration, crude oil is still a finite commodity...
Have a good weekend...
Davitte’ Lanier
Petroleum Industry Analyst

Below are a few interesting articles...

Why Doesn't My Hybrid Car Match The EPA Mileage Figures?
http://www.mixedpower.com/modules.php?name=News&file=article&sid=448
Hybrids go mainstream:
http://www.shreveporttimes.com/apps/pbcs.dll/article?AID=/20050402/NEWS05/504020338/1064
The automobile has become an important part of Chinese culture:http://commonsensewonder.com/mtarchives/006928.shtml

Gas & Oil News

The National Average for Unleaded Regular moved up a half a Cent to $2.234 a gallon, while on the other hand crude oil has dropped to $51.77 per barrel from just under $55 a barrel on Monday. This comes as no surprise to me. If the price of crude oil keeps bouncing up and down between $50 and $55 a barrel as we approach this Memorial Day Weekend, expect to be seeing The National Average for Unleaded Regular around $2.40 a gallon.

Take this thought into consideration; China & India's demand for crude oil is increasing at a horse race pace, U.S. refineries are antiquated and are struggling to produce enough gasoline to meet the humungous demand, and the world suppliers of crude oil are finding less than the world is consuming!

It now seems to me, we are all in the same boat, and it is slowly sinking!

New oil discoveries outpaced by increasing demand:
http://feeds.bignewsnetwork.com/?sid=77d761df72320511

Davitte’ Lanier
Petroleum Industry Analyst

Gas & Oil News

It's looking like the National Average for Unleaded Regular is on the move up, over night the price increased One full Cent to $2.229. It's the same old song and dance, two steps forward and one step back. As I have said over and over again, and I am not alone, most of the fault is with the lack of spare production capacity in U.S. Refineries.

Iranian Oil Minister Says Global Petroleum Markets Are Oversupplied:
http://biz.yahoo.com/ap/050426/caribbean_opec.html?.v=1

Davitte’ Lanier
Petroleum Industry Analyst

Gas & Oil News

National Average for Unleaded Regular moved up 1/10th of a cent to $2.219.

The major crude oil shipping lines anticipate a marked increase in demand, in India and China for the next several months, and this could very will put a strain on current global crude oil supplies. This indicates to me a ripple effect will be felt in the U.S. with higher prices at the pump come mid summer or sooner.

Oil Headed for Biggest Rally in 4 Months on Fuel-Supply Concern: http://quote.bloomberg.com/apps/news?pid=10000103&sid=affQCPEHQ_fQ&refer=news_index
Supply concern sends crude oil up 6%:
http://news.xinhuanet.com/english/2005-04/25/content_2873375.htm
It's worse than you think:
http://www.cnn.com/2005/POLITICS/04/25/worse.tm/index.html
Saudi Arabian comments prompt oil-price rise:
http://www.dailystar.com.lb/article.asp?edition_id=10&categ_id=3&article_id=14574
Saudi Arabia producing 86 percent oil of its total capability:
http://www.geo.tv/main_files/business.aspx?id=74408

Davitte’ Lanier
Petroleum Industry Analyst

Gas & Oil News

National Average for Unleaded Regular stayed at $2.218 per gallon over the weekend and it seems to be stable now. Crude oil is holding it's own at around $55 a barrel. This may be the lull before the storm. U.S. demand will soon be increasing as we enter into the summer driving season. And this will push the price of gas up again.
Something else that may affect crude oil prices is the demand of heating oil on U.S. inventories...
Sulfur cut plan for heating oil could cause price spike:
http://www.purchasing.com/article/CA527363.html

Davitte’ Lanier
Petroleum Industry Analyst

Gas & Oil News

National Average for Unleaded Regular hasn't changed; it stayed at $2.218 per gallon. We may have seen all we will get from that modest Four-Day price drop. As I said yesterday, the price of crude oil will not support a downward trend much longer. The price of crude oil is over $55.00 a barrel once again! Unfortunately it seems I was right but we won't know for sure until Monday when the weekend reports are posted.
Below are some articles for your Weekend reading pleasure. I'll be back Monday. Have a good Weekend...
Davitte’ Lanier
Petroleum Industry Analyst

Crude oil price rises in Asia overnight:
http://www.businessworld.ie/livenews.htm?a=1155729;s=rollingnews.htm
Saudis Said to Plan Energy Boost:
http://money.cnn.com/2005/04/22/news/international/saudi_production.dj/index.htm
Oil Could Foul Stocks:
http://money.cnn.com/2005/04/22/markets/stockswatch/index.htm
Crude oil price tops $55 per barrel again:http://www.newratings.com/analyst_news/article_791051.html

Gas & Oil News

$2.218 is Today's National Average for Unleaded Regular. It dropped 5/10th's of a Cent from Yesterday. On the surface for the past couple of days these little downward movements look encouraging. But, the price of crude oil will not support this trend much longer.
With more and more people considering gas mileage as a major factor in their choice of what kind of car to buy, automakers are shifting production to gas-electric vehicles.
Hybrids go mainstream:
http://www.shreveporttimes.com/apps/pbcs.dll/article?AID=/20050402/NEWS05/504020338/1064
Automakers, consumers looking for alternatives:
http://www.dunnconnect.com/articles/2005/04/04/news/news03.txt
Consumers give alt-fuel vehicles a look:http://www.eastvalleytribune.com/index.php?sty=39877

Davitte’ Lanier
Petroleum Industry Analyst

Gas & Oil News

4/20/05
Mid-Day Up-Date
Here we go! Up up and away...
Crude oil price returns above $53pb as US inventories dip:
http://www.newratings.com/analyst_news/article_786519.html

Davitte’ Lanier
Petroleum Industry Analyst

Gas & Oil News

$2.223 is Today's National Average for Unleaded Regular. It only dropped 1/10th of a Cent from Yesterday. Also, it looks like the price of crude oil is making another upward surge. I believe things are going to get a little "Slippery" on "The Crude Oil Dance Floor"! With US crude oil inventory reports reflecting an unexpected drop, when they should be increasing to meet the summer driving demand, it wouldn't surprise me to see new price records being set very soon!
When it comes to the price of gasoline, some people are saying "The Good Old Days" were only Two Years ago!
Gas-conscious car buyers in for mpg sticker shock,By CHARLES POPE AND LISA STIFFLERSEATTLE POST-INTELLIGENCER WASHINGTON CORRESPONDENT: http://seattlepi.nwsource.com/national/220458_mileage16.html

Davitte’ Lanier
Petroleum Industry Analyst

Gas & Oil News

4/19/05

Some more good news today! The National Average for Unleaded Regular dropped 2 Cents over night, according to The AAA Motor Club. It's now selling for $2.224 at the pump. But that's still over 42 Cents a gallon from a year ago at this time and we haven't started the heavy summer driving season!
Crude oil gained $1.28 a barrel as of Noon Today, moving it up to $51.65 per barrel.
To give you an idea of how influential the price of gasoline can have on consumer products; a used gas-electric Prius is selling for more than "List Price"!
Used Prius prices like new:
http://money.cnn.com/2005/04/11/Autos/used_prius/index.htm
Davitte’ Lanier
Petroleum Industry Analyst

Gas & Oil News

The National Average for Unleaded Regular dropped another 7/10's to $2.244 a gallon over the weekend, according to The AAA Motor Club. That's some good news for a "Monday Morning". But Crude Oil is still hovering just above $50 Dollars a barrel. There is usually a One to Two week delay before crude oil price movements, are reflected at the pump. Below are a couple of interesting articles to check out.
Davitte’ Lanier
Petroleum Industry Analyst

Think gas prices are high now?
http://deseretnews.com/dn/view/0,1249,600125789,00.html
Assessing ethanol: Lawmakers debate expense, development, environment:
http://www.greatfallstribune.com/apps/pbcs.dll/article?AID=/20050410/NEWS05/504100304/1002/NEWS01
Gasoline Price Hikes Take Toll on U.S. Consumers:
http://news.moneycentral.msn.com/breaking/breakingnewsarticle.asp?feed=OBR&Date=20050415&ID=4372609
Automotive Performance Parts Can Increase Gas Mileage!http://biz.yahoo.com/prnews/050413/phw055.html?.v=1

Gas & Oil News

AAA Motor Club reported another 7/10's of a cent drop in the National Average for Unleaded Gasoline bringing it down to $2.257. Don't let this lead you into a false sense of security because this is just a "Little Market Wobble". The fact of the matter is nothing has changed in the U.S. Refinery's ability to cope with the rising "Gasoline Demand" in the U.S. The upward price pressure on gasoline is greater than it has ever been!
Have a good weekend! I'll be back with more "Gas & Oil News" Monday!
Davitte’ Lanier
Petroleum Industry Analyst

I found some good stuff for you to read (this weekend) so check out the following articles!
Experts say fuel prices will continue to climb through summer months: http://www.zwire.com/site/news.cfm?newsid=14346507&BRD=2252&PAG=461&dept_id=453635&rfi=6
Why try Hybrid?: http://www.fortwayne.com/mld/fortwayne/news/local/11394795.htm
In search of greater MPGs: http://www.sanluisobispo.com/mld/sanluisobispo/business/11392397.htm
WASHINGTON, April 14 (Xinhuanet) -- Managing Director of the International Monetary Fund (IMF) Rodrigo Rato said on Thursday that the risks to the global economy have increased in recent months because of the surge in energy prices and massive global imbalances such as the huge trade deficit in the United States. Read the entire article here:
http://news.xinhuanet.com/english/2005-04/15/content_2831638.htm
Slowing global growth forecast: http://www.theglobeandmail.com/servlet/ArticleNews/TPStory/LAC/20050414/RIMF14/TPBusiness/International

Gas & Oil News

The trickle is now a drop. The AAA Motor Club reported a 2/10th's of a cent drop in the National Average for Unleaded Regular Gasoline yesterday. It now is at $2.264 a gallon. Although this is (or what seems to be) a glimmer of hope that gas prices are leveling off, the fact is gasoline consumption is not receding. There is such a fine line between the amount of gasoline the U.S. Refineries can produce and the amount of gasoline being burnt by people driving vehicles, it now has come to be a daily plus or minus battle of supply & demand!
(read these articles)
High gas prices prompting some changes
http://news.minnesota.publicradio.org/features/2005/04/11_bensonl_gasoline
Fuel-Price Hikes Spur Worries of Inflation
http://www.sptimes.ru/archive/times/1060/news/b_15394.htm
Shell Pumps Twice as Much It Finds
http://money.cnn.com/2005/03/31/news/international/shell.reut/index.htm Soaring oil price raises factory bills
http://business.timesonline.co.uk/article/0,,16849-1565222,00.html
Global oil price to stay high for the next 20 years: IMF
http://www.biz-day.com/read/economy/11_apr_05/jp4nc-h/global_oil_price_stay_high_next_20_years_imf.htm

Davitte’ Lanier
Petroleum Industry Analyst

Gas & Oil News

A trickle of hope dripped down the National Average for Unleaded Gasoline pipe today. AAA motor Club reported the average dropped a penny to $2.266. That may not be a lot, but it may be the first sign gasoline prices are starting to level off. Another indicator gas prices may be leveling off for a while is, the price of crude oil dropped down to just over $51.00 a barrel today. But don't hold your breath, this is the first "Little Dip" I've seen on the "Crude Oil Dance Floor" in some time. And remember the U.S. Refineries are old and rickety, barely keeping up with demand....
More and more Businesses are feeling the pressure increasing fuel costs are putting on their bottom line. Here's some examples (Pummeled at the pump) Most businesses absorb record fuel costs: http://www.bizjournals.com/milwaukee/stories/2005/04/11/story1.html
Davitte’ Lanier
Petroleum Industry Analyst

Gas & Oil News

$2.276 is the current National Average for Regular Unleaded Gasoline (according to the AAA motor Club). That is, Twelve Point Four Cents ($0.124) shy of my estimation Unleaded Regular would be selling for (at the pump) come Memorial Day Weekend! With some Forty Days left to go (until Memorial Day Weekend) and with the current rate a Gallon of Unleaded Regular is increasing, odds are I may have under estimated the shortcomings of the refineries in the U.S.!
Unless the price of crude oil drops like a rock in the next couple of days and the current gasoline inventories increase in the U.S., look to be spending a considerable amount more (on the average) than $2.40 for a "Gallon of Unleaded Regular Gasoline on Memorial Day!
Davitte’ Lanier
Petroleum Industry Analyst

Gas & Oil News

There is no one simple answer as to what is driving the price of crude oil up at such an unprecedented pace. As I have stated before "The crude oil production and the consumption numbers prove Global Supply and Demand is in Equilibrium for now". So what is really going on? U.S., China, and India are in direct competition for the majority of Global crude oil production. Let's look at the U.S. (being the most developed country of the three) as a model for demand growth. The consumption of crude oil in the U.S. is increasing at a much lower rate than it did fifty years ago because there is less potential for a higher growth rate. In the U.S. the vast high way and road infrastructure is, for the most part developed. Gasoline and Diesel fuel used to propel vehicles across this vast highway and road infrastructure is what consumes the major portion of U.S. crude oil supplies. China, and India are beginning to develop their highway and road infrastructure as the U.S. did fifty years ago. China, and India are producing and buying vehicles to drive across that highway and road infrastructure increasing their crude oil demand. And they are growing at a mush faster rate (than the U.S. did fifty years ago) because they have many more people and the technology has already been invented to do it. Add this to fears of a supply shortage or disruption caused by an act of terrorism or some natural disaster coupled with Nations building up "Strategic Oil Reserves", may bring you closer to understanding what's really going on!
Davitte’ Lanier
Petroleum Industry Analyst

Gas & Oil News

The Energy Department just announced gasoline prices are high and likely to get higher because oil costs more. (U.S. Agency Forecasts Higher Gas Prices http://news.yahoo.com/news?tmpl=story&u=/ap/20050407/ap_on_go_ca_st_pe/costly_gas_5 ) Wow, I wonder how they figured that out....
Oh well, I guess it's good to know they're aware gasoline is made from crude oil. That's enough joking around for now. AAA Motor Club once again reported a substantial increase in Regular Unleaded Gasoline. Yesterday it was $2.228 and today it is $2.251. In the past Three Days the Nation Wide Average has increased just under 6 cents a gallon. This is a very bad sign of things to come!
I'll be back with more Gas & Oil News Monday Morning...
Have a great weekend!
Davitte’ Lanier
Petroleum Industry Analyst

(Here is some good stuff to read)
Oil: Is the end at hand?
http://money.cnn.com/2004/11/02/markets/peak_oil/index.htm
How long will the World's Oil last?
http://www.msnbc.msn.com/id/5945678
China emerges as global consumer
http://news.bbc.co.uk/2/hi/asia-pacific/4272577.stm
The most bang for your gasoline buck
http://www.carfax.com/cfm/CR_Silver_Content_GasMileage.cfm
High oil price forces hauliers to drive up rates by 20%
http://business.scotsman.com/agriculture.cfm?id=338412005
Saudi 'overspending keeps oil price high'http://business.timesonline.co.uk/article/0,,9072-1534846,00.html

Gas & Oil News

I hope this doesn't sound like a broken record. But, yesterday I saw (according to AAA Motor Club) another shocking jump in the price of the National Average for Regular Unleaded Gasoline! Get this; it went up 3 cents over night. Wow, that's almost 6 cents in Two days! That is a reflection of the fact that the refineries, in the US, can't keep up with Gasoline Demand no matter how much crude oil they have! (Remember crude oil inventories in the US are at a "Three Year to Date High".) Now look at the bigger picture! OPEC is just about at their production capacity.
Davitte’ Lanier
Petroleum Industry Analyst

Check out this little slip of the tongue! "From one of the horses mouths."
(Davitte')

Venezuela's Oil Minister Says OPEC Running Out of Spare Production Capacityhttp://biz.yahoo.com/ap/050405/venezuela_opec.html?.v=1

Gas & Oil News

Yesterday I saw (according to AAA Motor Club) the largest One Day increase in the National Average for Regular Unleaded Gasoline that I can recall in resent history! Over night, the average increased $0.028. To the layman, a 2.8-cent difference in the price of one gallon of gasoline doesn't seem like a lot. But, when you take into consideration that the one-day increase is across the board over the entire country you are talking about a huge amount of money! And, for the First time since the AAA Motor Club has been charting Gasoline Prices, the State Average for Unleaded Gasoline is over Two Dollars a Gallon in every single state in the country!
Davitte’ Lanier
Petroleum Industry Analyst

Gas & Oil News

"Pandora's Box Has Been Opened!" Twelve days ago on March 24th, I expressed a deep concern about what will happen, to crude oil prices, when Nations realized their need to develop "Strategic Oil Reserves"! That time has come and it has arrived way sooner than I thought it would! At this point in time, I can see nothing on the horizon that will detour a hyper price spike in the cost of crude oil. This is what I stated on March 24,2005, "To try to understand why oil prices are so volatile, may better be understood by asking the question, “Why are the powers that be, buying more oil than they are actually consuming?” The reality of the oil (Supply & Demand) situation is that there is enough to go around right now. The World is at equilibrium! The underlying fear of a major disruption, caused by an act of terrorism or a natural disaster, is creating a need. A need for nations to build up a Strategic Reserve of oil!"
I am extremely concerned on what is about to happen to the "Global Economy"!
Davitte’ Lanier
Petroleum Industry Analyst

Crude oil prices smash through $58By Peter GarnhamPublished: April 4 2005 08:16 Last updated: April 4 2005 17:41http://news.ft.com/cms/s/0648ff3a-a4d9-11d9-8616-00000e2511c8.html

Gas & Oil News

Economics 101, Elasticity of Demand; The responsiveness of the quantity purchased of an item to changes in the item's price. If the quantity purchased changes proportionately more than the price, the demand is elastic. If the quantity purchased changes proportionately less than the price, the demand is inelastic. For example, the price increase of Gasoline has a relatively small effect on Gasoline consumption; thus, the demand for Gasoline is inelastic. Now this being true with Gasoline, there is an alternative course of action. That is, one must get more value out of the Gasoline purchased to off set the price increase. The desire to get more value out of the money one spends on Gasoline, will only accrue when disposable income is restricted to the point it has a negative impact on other purchases. In other words, if you have to do without something to buy Gasoline, you must conserve Gasoline or just do without other things!
Davitte’ Lanier
Petroleum Industry Analyst

Gas & Oil News

Things are a hop-in on the "Crude Oil Price Dance Floor"! With Goldman Sachs (who a lot of people listen to) giving an opinion that crude oil could hit $105 a barrel is making a lot of investors regroup. It t now seems to them that $55 a barrel is a bargain. I'll be back with more cutting edge info on Monday 4/04/ 05.....
Davitte’ Lanier
Petroleum Industry Analyst