Today the Energy Department released its Weekly Petroleum Status Report. While it showed a build in crude stockpiles, gasoline stockpiles continued lower at a time when they’re supposed to be building to get ready for “Summer Driving Season”. As a result, wholesale gasoline (RBOB) increased over 5 cents a gallon to $3.41 per. At the usual markup of 40-60 cents over wholesale around here, we could see gas prices ranging around $3.90 in a few weeks.
We’re in for a repeat of 2008, when gas prices got near $4 last. Energy costs are a “tax” in a real way. They suck money from other segments of the economy, and render it crippled. As oil and gas prices increase, we’ll see another recession by the end of the year as the economy can’t handle the increased energy costs. Already companies are talking about raising prices to cover energy and transportation costs, and that too will bleed more money from your wallet or pocketbook.
As predicted several places, the economy will continue bumping its head on high oil prices due to stagnant (and soon falling) oil production and growing world-wide demand.
Rinse and Repeat.
Current wholesale gas prices here: RBOB Gasoline