Gas up 33 cents — second biggest two-week jump ever

[Pale Blue Dot]

Source: MSNBC

NEW YORK — Gasoline prices in the United States posted their second-biggest increase ever in a two-week period, due to the rise in crude oil prices stemming from the turmoil in Libya, an industry analyst said Sunday.

The national average for a gallon of self-serve, regular gas was $3.50 on March 4, according to the Lundberg Survey of about 2,500 gas stations, up 32.7 cents from the previous survey on Feb. 18.

The gross price increase was the biggest since the 38.44 cent-rise that occurred in the Aug. 26-to-Sept. 9, 2005, period following Hurricane Katrina, according to survey editor Trilby Lundberg.

"It is certainly in response to the jump in crude oil prices, which are responding both to the output reduction from Libya and from the shock value of Libya's crude on other crudes," Lundberg said.

Read more: http://www.msnbc.msn.com/id/41938193/ns/business-oil_and_energy/

[PSPS]

1. "due to the rise in crude oil prices stemming from the turmoil in Libya"

Gasoline prices in the United States posted their second-biggest increase ever in a two-week period, due to the rise in crude oil prices stemming from the turmoil in Libya, an industry analyst said Sunday.

Funny that the gas station didn't refill their tanks and yet raised the price. This has more to do with speculation than anything else.

[Umbral]

4. That, or the Democrats tried to eliminate subsidies/tax breaks for the oil industries.

When you hold all the cards, payback can be a real bitch.

[Vinee]

9. Oil is a globally traded commodity. What can you do about speculation?

We need to be attacking the supply and demand equation. As this continues, we need to consider that this summer will be one of the hardest summers in 40 years and will probably reverse any progress made on restoring main street. Prices of everything are going to go up because of this. That's going to reduce demand for everything. That's gonna reduce hiring. that's going to throw us back into the death spiral.

[plumbob]

11. If we'd stop naked trading, the volatility would reduce greatly.

The government cured the Hunt brothers on silver by simply making them take delivery of their contracts. It would work here, too.

[Vinee]

12. maybe. seems like increasing domestic production and decreasing our demand would help too

[plumbob]

14. Sure, and the increased uncertainty caused by naked trades only

undermines that. Prices are no longer rooted in the physical world, but the money you'd spend to increase production or decrease demand IS in the real world.

Uncertainty is the enemy of planning.

[Dulcinea]

16. Overheard at the gas station last week:

"Oil speculators should be shot. No blindfold, no cigarette, just a bullet to the back of the head like they do in China!"

[Vinee]

18. that might work.

[The Croquist]

10. The should raise prices before they fill their tanks

Follow the argument before you flame:

Scenario A:
Prices go up 33 cents a gallon and the station has 10,000 gallons of gas. The station doesn't raise their prices. They give up $3,300 in revenue but make you happy.

Scenario B:
Prices go down 33 cents a gallon and the station has 10,000 gallons of gas. The station doesn't lower their prices. Everybody goes to the station across the street because his gas is 33 cents a gallon cheaper.

Real life:
Stations change their prices to reflect their competition. Sure some stations are slow to drop but they do.

Several years ago in Georgia we had a gas shortage because a Gulf hurricane shut down the refineries just before they were scheduled to deliver our "Boutique" gas. As a result the wholesaler's tanks were low. Prices skyrocketed and there wasn't enough gas to go around. As things settled down and prices started to drop, all the big stations were pumping gas but the mom and pop convenience stores still didn't have any gas. The reason was that the owners weren't willing to fill up with expensive gas that they would have to sell a few days later at a lower price. The stations that get refills everyday didn't have that issue.

Ok, feel free to flame.

[kestrel91316]

2. Is it time to send a thank you note to the guys who stole my car yet?

[AnneD]

3. I was filling up my car on Friday........

It had already go up $0.25 but while I was pumping.....the gas went up another nickel. I saw the sign change with my own eyes. Amazing. I got a lock for my gas tank last week. At least we can still get gas. It really gets interesting when you can't. I am old enough to remember the oil embargo. I am afraid before this is over we may have shortages, manufactured or real.

[Roland99]

8. For some reason, I really paid attention to the total amount when I filled up over the weekend

Perhaps because the last time gas was this high, it was just me and my daughter (who was only w/me half the time) and an extra $50/month was make or break. Now I have a family of 6 and I think of a $55 fill up as meaning we're not going out to eat, we're not going to a movie, we're setting the A/C up another degree or two.

It's making me rethink other monthlies like homeowners' insurance and car insurance. I know GEICO isn't a very "blue" company but I can save about 40% per month on two vehicles if I switch from Progressive. Although, my car insurance policy is due for renewal in May so I'm going to give Progressive a chance to lower the price significantly (helps that my credit score is now the highest it's ever been after some repair efforts and paying down loads of debt).

My gf is freakin' AWESOME at coupon clipping and searching the grocery ads. She came home yesterday with about $75 in meat that she paid maybe $20-25 for!

[diane in sf]

5. Most gas used here comes from Canada, Mexico and Venezuela--these prices are robbery

[RUMMYisFROSTED]

6. Most gas USED here comes from...here.

Your point still stands for imported oil, however.

[MurrayDelph]

7. Yeah, but why did it have the be the two week period

when I was driving between Southern California and northern Oregon (and back)?

[Township75]

13. How are Bush and Cheney doing this?

I thought they were no longer in power..or are they?

[primavera]

15. No problem

I drive a Prius that gets 50 mpg, and that only when I can't ride a scooter that gets 100 mpg - I only have to go to the gas station about once every two months.

[Kennah]

17. I damn near blinked and the price went up in Puyallup/Sumner (WA)

$3.459 a gallon on Saturday, I waited, and it was $3.509 a gallon on Sunday.

I had failed to heed the lesson I already knew, so I confessed my sins and filled up.

I say $4 a gallon before summer here in the Pacific Northwet, and approaching $5 a gallon. California will surpass $5 a gallon, head for $6 a gallon, but it might or might not get there.

[hayu_lol]

19. In south-central Oregon...

heating fuel went to $3.549 last week(Kerosene). Going to make it one of the most expensive heating seasons ever. If this continues, there will be a return to those polluting woodstoves just to survive during the long winters.

[thereismore]

20. It's a good reason and even better excuse. nt

[Imagevision]

21. 2011 will be a zero year for an economic comeback, just in time for 2012 elections, I hope we have

someone else to choose from besides Obama - Audacity Of Hope? Audacity of BS!

[roamer65]

22. Too bad we didn't listen to Jimmy Carter in the late 1970's.

He told us we needed to end our reliance on ME oil and he was goddamn right.