San Diego County gasoline price rises sharply again
Posted: Feb 01, 2013 9:49 AM EST
Updated: Feb 01, 2013 9:51 AM EST
Gas Price TrackerSAN DIEGO (CNS) - The average price of a gallon of self-serve regular gasoline in San Diego County rose 6.5 cents Friday, its largest daily increase since Oct. 6, to $3.885, its highest amount since Nov. 9.
The average price has risen six of the past six days and is 17.4 cents more than one week ago, 26.4 cents higher than one month ago and 10.6 cents greater than one year ago, according to figures from the AAA and Oil Price Information Service.
"The usual culprits are being listed as reasons for the spike -- high oil prices, Middle East tension, local refinery incidents and refineries being brought down for maintenance as they prepare to produce the summer blend of gasoline," said Jeffrey Spring of the Automobile Club of Southern California.
"But perhaps equally if not more importantly, say oil industry analysts, financial market managers see refined gasoline as a `sure bet' for their clients' portfolios. Big investment money is flowing earlier and earlier into gasoline trading, ahead of the usual `spring spike.'
"Southern California is a particularly vulnerable market for shortages because it has no inexpensive alternatives if local refinery production is down, and traders are aware of this."
In West MI we just had the first week with two 15-cent+ jumps since Katrina. I paid 3.39 on Saturday and it'd cost 3.78 to refill this morning (with a stop at 3.59 on Monday that drifted to 3.54 before the second spike.)
In reality though, here it's just catching back up to NYMEX - we usually pay 70-80 cents for delivery/taxes above NYMEX but we're way below that range (oversupply?) for most of January.
the US dollar will fall in value
and gasoline will climb higher
oversupply does not mean much anymore
because refiner capacity is limited
they haven't built a new big refinery in the US in 10 years
may are over 30 years old