11 cents Price increase in Gasoline per gallon over night in the US, AAA reports
New Deal democrat’s commentary earlier today. “What is the effect of Oil and Gasoline Prices on the US economy?” Angry Bear. I guess I am not surprised to see gasoline market prices and oil prices start to increase. That is expected even if there is no reason for it to jump today or even months later. The supply on hand is reasonable. A price increase does not have to take place today
“Average price of gas jumps 11 cents overnight in the US, AAA reports,” Arizona’s Family
NEW YORK (AP) — The average price for a gallon of gasoline jumped 11 cents overnight to about $3.11 in the U.S., according to motor club AAA.
Gas prices were already rising before the U.S. launched strikes on Iran as refiners switch over to summer blends of fuel, but crude futures have risen sharply this week because of the war.
On Tuesday, oil futures soared to levels not seen in more than a year as Iran launched a series of retaliatory attacks, including a drone strike on the U.S. Embassy in Saudi Arabia.
Benchmark U.S. crude jumped 8.6% to $77.36 a barrel.
Brent crude, the international standard, added 6.7% to $81.29 a barrel. Global oil prices jumped to start the week over concerns that the war will clog the global flow of crude. The Associated Press
The behavior of oil prices is quite curious. Back in 2022, Brent crude reached almost $100 per barrel BEFORE Russia invaded Ukraine, despite the fact the EIA’s January Short Term Energy Outlook stated that “We forecast that global oil production will outpace global oil consumption during both 2022 and 2023, resulting in rising global oil inventories.
Today, AFTER closure of the Strait of Hormuz, Brent has risen to only $82, despite the fact the 20% of the world’s oil supply has been disrupted!?!
I don’t mean to get into conspiracy thinking, but you have to admit it looks extremely fishy.
John:
It is called rent taking. They have an advantage and they are taking it, Taking it regardless of harm to the US or its citizens. If you go back to one post and in the comments sections. I posted a number of graphs on oil and gasoline taken from the EIA. Here is another.
Another link:
Short Term Energy Outlook 2026
If you look at this, increasing prices were already expected based upon Middle East issues. The prices went up due to Iran and Iraq going at it. Read New Deal democrat’s forecast from yesterday. I believe he is right on.
What is the effect of Oil and Gasoline Prices on the US economy?
I added links so you could read them for additional information.
I agree, it’s rent taking (and speculation.) But why was the speculation so great and anticipatory in 2022 and so muted now? IMO the “invisible hand” of the market is broken, replaced by powerful institutions and individuals are “guiding” the prices. Remember when the Hunt Brothers tried to corner the silver market?
John:
Read my answer to Mark
My question is concerning February 26 wholesale price of gasoline on the commodities market. It had been trading around $2.00 for some time. But on the afternoon of 2/26/26 the price jumped instantaneously to around $2.25. This was over a day before the attacks were launched. Was someone tipped off?
Mark:
Speculation and am not being a smart ass with my answer. Look:
I was around in the seventies when the oil embargo occurred. “During the 1973 Arab-Israeli War, Arab members of the Organization of Petroleum Exporting Countries (OPEC) imposed an embargo against the United States in retaliation for the U.S. decision to re-supply the Israeli military and to gain leverage in the post-war peace negotiations.”
People panicked and there were long lines to the pumps in Bensenville and Addison. I had bought a Datsun 510 shortly befor this all started. Red, 4 doors, and a 1.6 litre carbureted engine. Smartest move I made. It also had a Borg-Warner transmission. It burned premium gasoline. I got 30 miles to the gallon. I was going to college at Lewis University in Romeoville, IL.
Gasoline went from ~30 cents a gallon to sixty-something a gallon for regular. There were lines waiting to fill up in Bensenville. Down in Romeoville, there were no lines. Hmmm, what was the difference?
People panicked and were afraid to wait till they really needed gasoline. I was in the suburbs around Chicago and there were still lines. There was no real shortage of gasoline. Just demand and people wanting what they could get whether it was a 2-3 gallon fill up for a 20-gallon tank or not. So the gasoline and suppliers upped the price and gouged the public.
Business can take advantage if there is or if there is not a real issue. Mileage per gallon is way higher. Cars and Pick-me up trucks are vastly more efficient. If drivers slow down to the speed-limit and m-n-minimize their gasoline usage.
At 70 mph (limit is 65 mph), I can get 30+ mpg. But virtually no-one does the speed limit in AZ much less 5mph over. They fly by us and I catch up at each of 3 lights if they have not run them (another consistent characteristic of AZ drivers). To go from where I live to Phoenix is ~ 12 minutes at 70mph on a two-lane highway each way and if you catch all green lights. So, what is the point of going faster?
Why do you care if the price goes up $25 if you have an efficient vehicle? It is minute for you. However, the sellers of thousands of gallons of gasoline and oil can rack it in big time and blame the Middle East when they should be looking at the orange one for creating the situation. To your question, you do not need a bombing to know prices were going to go up. It could have been another reason which caused the issue. It is painfully obvious what will happen in the Middle East.
Bill, I have no doubt it was speculation. But that was a significant move and timed perfectly. I would like to know who the speculator(s) is and were they privileged to any information (i.e insiders).
Wait, just 2 weeks ago, at the SOTU, Dear Leader told us gasoline was $1.99, sometimes less. He would never lie to me, he LOVES us !
Just:
That was before he bombed Iraq. one of the top 3
@Just,
Our overlords don’t lie. What looks like lying is just stupidity. Or so I’m told.
“like!”