Home > Boards > Commodities > Energy > Oil & Gas - Energy - Commodities - Resources

Gas Prices Put Into Perspective

Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
DiscoverGold Member Profile
Member Level 
Followed By 546
Posts 72,824
Boards Moderated 42
Alias Born 03/10/04
160x600 placeholder
Intel Taps New Leaders in Organizational Shuffle
By Kimberly Chin
Wheat Drops as Rainy Forecast Offsets Crop Quality Concerns
Top Company News of the Day
Front Month Nymex Natural Gas Rose 2.10% to Settle at $3.2580 -- Data Talk
Front Month Nymex RBOB Gasoline Rose 1.25% to Settle at $2.2243 -- Data Talk
STOXX Europe 600 Index Ends 0.26% Higher at 456.42 -- Data Talk
FTSE 100 Index Ends 0.39% Higher at 7090.01 -- Data Talk
DAX Ends 0.21% Higher at 15636.33 -- Data Talk
CAC-40 Index Ends 0.14% Higher at 6611.50 -- Data Talk
STOXX Europe 50 Index Ends 0.11% Higher at 3550.40 -- Data Talk
EURO STOXX 50 Index Ends 0.26% Higher at 4123.13 -- Data Talk
Audi Will Phase out Internal Combustion Engines by 2033
FTSE 100 Closes Higher Amid Gains for Oil
U.S. Crude-Oil Stockpiles Likely to Fall in DOE Data, Analysts Say
Spain Sells EUR8 Billion in New 10-Year Bond -- Update
Tupperware Shares Rise 14% on Debt Repayment, Share Buyback
U.S. Mid-Atlantic Manufacturing Activity Picks Up in June -- Richmond Fed
Personal Income Seen Down 2.7% in May -- Data Week Ahead
UK Boards Braced for New 'Golden Age of Activism' in Wake of Brexit, Pandemic -- Financial News
FTSE Rises, Oil Stocks Gain as Tighter Supply Boosts Brent
VW's Seat to Close Spanish Plant for Three Days on Lack of Chips
Slovenia Hires Banks for EUR1 Billion Debut Sustainability Bond Issue
Targovax Gets FDA Fast-Track Designation for ONCOS-102 in Melanoma
EU Approves Two More Manufacturing Sites for Pfizer-BioNTech Covid Vaccine
Oshkosh to Hire 1,000 to Make USPS Vehicles in S.C.
DiscoverGold Member Level  Wednesday, 05/12/21 03:46:13 PM
Re: None
Post # of 5634 
Gas Prices Put Into Perspective
By: Bespoke Investment Group | May 12, 2021

The Colonial Pipeline ransomware attack resulted in a shutdown of a major artery on the East Coast. While the pipeline is partially back online and anticipated to once again be fully operational later this week, the temporary supply outage has resulted in headlines of long lines and some gas stations even totally running out of product to sell, and that has only started to feed on itself causing more hoarding. As a result, the national average for a gallon of gasoline according to AAA crossed back above $3 this week for the first time since October 2014.

According to AAA, just in the past day, the average price of a gallon of regular unleaded gasoline has risen 2.3 cents and over the past week, it is up 8.1 cents. At an annualized pace, the price of a gallon of regular gasoline is up 281.24% in the past day and 143.9% over the past week. Higher grades of gasoline and diesel have risen by a lesser amount but have likewise seen significant appreciation.

At face value, those readings may look alarming, but from a historical standpoint, we've seen far larger. Looking again at the annualized weekly change for regular gasoline in the chart below, the current reading actually comes up just shy of the top decile of all readings since 2004, and there were even higher readings as recently as this past February and March. Even accounting for seasonality (gray shaded regions in the chart highlight every month of May), prices tend to move higher this time of year, and there have been multiple times in the past that gasoline prices have risen at as fast of a clip as now in the month of May. For example, last year was one instance in addition to 2015 and 2016. So, from a national perspective, this week's uptick in prices at the pump is not necessarily extreme.

As previously mentioned, the Colonial Pipeline is a major piece of energy infrastructure on the East Coast. In other words, while the national average of gas has risen sharply as a result of the event, the largest increases have been concentrated to a specific region of the country: the Southeast. In the heatmap below, states colored with deeper shades of green indicate those where the average price of a gallon of gas have risen the most in the past week.

Places like Georgia, Alabama, and the Carolinas (all of which the Colonial Pipeline pass through) have seen their states' average gas prices rise in the mid-to-high single-digit percentage range over the past week; the highest increases in the country. Moving further north along the Eastern Seaboard, the increases in gas prices become less steep but still notable. The vast majority of states in the Midwest, New England, and Mid Atlantic have seen prices rise only in the 2 to 3% range. The same applies to the states in the heartland. But moving further out West, price appreciation has been even smaller. Most Western states have seen the average gas price rise in the 1% range, which is exactly what you would expect to see at this time of year.

Looking at price changes in the past day alone, it is largely the same story. Much of the South has seen prices rise the most rapidly while prices further North have not risen by nearly as much. In fact, states like Missouri, Indiana, and Michigan actually saw prices move slightly lower. Again, the West also has seen prices modestly higher.

Without diminishing any of the effects that the shock of a sharp uptick in prices could have, we would also note that even after the significant appreciation, gas prices in the South remain some of the cheapest in the country. California and other West coast states still have the highest prices per gallon in the country while places like Louisiana and Mississippi have the cheapest.

Read Full Story »»»


Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
Current Price
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist
Consent Preferences