Posts Tagged gas
Americans may hit gas again after reserve release
Posted by Oksana Grebenjuk in Favourites, Trading Markets on Июнь 29th, 2011
Going lightly on the gas pedal, getting a few dollars of gas rather than filling up, cutting out the cruising, and swapping the BMW for a Dodge Caliber — those are ways Americans are coping with gasoline prices well above $3 a gallon.
But people pumping gas on Friday from Miami to San Francisco saw prospects for lower prices thanks to President Barack Obama’s decision on Thursday to tap the country’s emergency petroleum stockpile as part of a global effort to bolster tight oil supplies.
The release of 30 million barrels from the U.S. Strategic Petroleum Reserve may not make people reschedule long summer road trips but could spell welcome relief for household budgets crimped by an anemic economic recovery.
While it might be a political move by Obama to help his re-election bid for 2012, as some speculate, most drivers seemed happy to get a break, even a small one. Jonathan Sifuentes, a 26-year-old power company employee, called the decision «the right thing to do» as he fueled up a Toyota Camry sedan on Miami’s outskirts.
«Everyone is hurting, with the economy, and unfortunately we do need gas to maintain our lifestyle, to go to work, to get groceries, to pick up our kids,» he said. Read the rest of this entry »
The Real Reason Gas Prices Are Soaring
Posted by Oksana Grebenjuk in Trading Markets on Март 31st, 2011
Have you ever wondered why when you go to the gas station to fill up the family car, the price of gas at the pump has just jumped 25 cents a gallon over the past three days? Perhaps you thought the oil companies were just being greedy. Or you believed the nightly news pundit who said that gas prices went up because the crisis in Libya was affecting supplies of oil. One professional oil trader says that you’d be wrong on both counts.
Dan Dicker, who has spent nearly three decades in the oil market, has a profoundly disturbing explanation of why the price of oil, and the gasoline that comes from the crude product, has risen so dramatically in recent months. It turns out, Dicker says, that the price has nothing to do with supply and demand for oil. It’s the financial market for oil, filled with both professional speculators and amateur investors betting on poorly understood oil exchange-traded funds, who have ratcheted up the price of gas to such sky high levels.
«There is no supply issue going on here — what you have is the perception of the possibility of a supply issue,» Dicker says. «A whole bunch of people are pouring money into an oil market trying to take advantage of what they perceive to be a real risk in supply. It’s a marketplace that I argue should not be allowed to be wagered on like a stock or bond.»
Dicker notes that Libya produces only 1.3 million barrels of oil a day, just a tiny fraction of the world oil market. Even if Libyan crude were lost to the world market in the current turmoil, and there is no sign that it is, Saudi Arabia has 5 million barrels a day to use in case of an emergency. Read the rest of this entry »
Retailers report solid gains in February
Posted by Oksana Grebenjuk in Trading Markets on Март 4th, 2011
Shoppers braved February’s chill to hand retailers surprisingly strong sales gains, extending the momentum from a strong holiday season and providing evidence of a strengthening economic recovery. Worries are growing, however, that rising gas prices could sap shoppers’ spending in the spring.
Among major retailers reporting February results Thursday, Limited Brands Inc., J.C. Penney Co. and Macy’s Inc. reported gains that beat Wall Street expectations. Luxury retailers including Saks Inc. saw sales surge as the affluent kept spending.
There were only a few stragglers. Target Corp. announced an increase slightly below analysts’ projections. And Gap reported a bigger-than-expected drop. Stronger sales from a diverse group of retailers showed that a broader range of shoppers are benefiting from the economic recovery, says Michael P. Niemira, chief economist at the International Shopping Centers.
The ICSC said that its index of 28 retailers rose 4.2 percent for February compared with the same month last year, well above the trade group’s projections for a 2.5 percent to 3 percent increase. The gain, which builds on a 3.7 percent increase last February, follows a revised 4.7 percent increase in January and the best holiday season since 2006. Read the rest of this entry »
Indonesia claws its way to economic superpower status
Posted by Oksana Grebenjuk in Trading Markets on Октябрь 5th, 2010
Indonesia is one of the «rising stars» of emerging Asia and some economists believe this vast nation will one day become a regional superpower, behind only China and India, as global economic activity increasingly shifts towards east Asia, away from the faltering developed nations of the west and Japan.
The country is delivering a torrid 6 percent annual GDP growth rate. Indeed, the Jakarta Stock Exchange has soared almost 40 percent this year, recently touching a new record closing high.
The Asian Development Bank expects Indonesia to grow its economy by 6.1 percent this year, and 6.3 percent in 2011.
“Economic recovery in many Western countries affected by the global financial crisis is uncertain,» Deloitte Asia Pacific CEO Chaly Mah told The Jakarta Post in a recent interview. «It’s relatively patchy. They are still struggling with economic challenges, and the unemployment rate remains high. There is still no clear sign of economic growth there.»
Indonesia, boasting a population of 240-million, also features a huge working class population (estimated at 58-million), an expanding manufacturing base, moderate labor costs, a sound financial services sector, tremendous natural resources (including oil and gas reserves), as well as a relatively stable political system. Read the rest of this entry »
Japanese export growth slows again in August
Posted by Oksana Grebenjuk in Trading Markets on Сентябрь 28th, 2010
Japan’s growth in exports slowed for a sixth consecutive month in August, another signal that the nation’s economic recovery is running out of gas, while the yen remains at a persistent 15-year high against the dollar.
Exports climbed 15.8 percent on an annual basis, compared with a peak 45.3 percent surge in February.
The slowdown in exports comes amidst moves by the Bank of Japan to intervene to soften the strengthening yen, while a political dispute with China keeps growing.
Exports to other Asian countries, which represent for more than half of Japan’s total export business, rose 18.6 percent, significantly slower than the 23.8 percent increase in July.
Exports to China grew by 18.5 percent in August, down from a 22.7 percent annual increase in July.
Meanwhile, Japanese exports to the U.S. rose by 8.8 percent from a year earlier, far below the 25.9 percent climb recorded in July. Read the rest of this entry »
Retail gasoline prices match 2010 high
Posted by Oksana Grebenjuk in Budget on Март 10th, 2010
Motorists are well down the road to higher pump prices as warmer weather and the driving season approaches.
Average retail gasoline prices, continuing a surge that started last month, have now matched their 2010 high on the way to prices that many analysts believe will top $3 per gallon this spring.
The nationwide average retail gasoline price rose 0.6 cents Monday to $2.753 per gallon, virtually identical to the high water mark of $2.7583 reached on Jan. 14, according to auto club AAA, Wright Express and Oil Price Information Service.
Prices have risen 9.2 cents in the last month and are now 80.6 cents higher than levels of a year ago.
The Energy Information Administration, which is among those predicting $3 gallon gas this spring, will release figures on nationwide retail gasoline prices later Monday. Read the rest of this entry »
Gas Report for the Summer of 2009
Posted by Oksana Grebenjuk in Favourites, Trading Markets on Апрель 23rd, 2009
Last summer as gas prices shot up to $4 a gallon in some areas, the idea of taking a long road trip anywhere was often brushed aside for a week of playing video games or watching online movies instead. Well, taking into consideration the recent report from the Energy Information Administration (EIA), we can conclude that this summers road trip vacation plans can go back on the menu.
The EIA is estimating that gas prices should be hovering at right around $2.33 a gallon throughout most of the summer. This is of course assuming that the recessed economy does not come around, or OPEC does not slash their production of oil.
Gas prices have gone up somewhat since their amazing $1.40 low earlier this year, but the increase is mostly due to the slightly higher crude oil costs ($53 a barrel) and refineries trying to pocket a little extra profit for themselves. U.S. oil production sources tell us they should have the capacity to pump an additional 440,000 barrels this year, but our summer gas rates will none-the-less depend significantly on the plans of the OPEC oil cartel. Read the rest of this entry »
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