2-for-1 Friday: Bubble Map and Gasoline Price Spike Update
November 15, 2012
The Bubble Map is back! Since we last checked in crude oil spot prices have fallen. The price of WTI has dropped $10 since the end of August to $85.45 on November 15th. The price differential between WTI and WCS has doubled to $32 under. Limited pipeline capacity is to blame for the slump in the price of WCS. Enbridge is limiting capacity on its Line 4 and Line 67 pipelines for the rest of the month. The price of Bakken (shown on the map at the well-head), which suffered from the East Coast railway and refinery shut downs in the wake of Hurricane Sandy, was $22 under WTI on November 15th.
Moving outside the Bubble to California and the October price spike; prices at the pump dropped below pre-spike levels just before Halloween and have continued to fall. The price of a regular gallon of gas in Los Angeles yesterday was $3.85, down $0.86 from height of the spike on October 8th. A state Senate hearing on the price spike was held yesterday in San Francisco. Proposals for more oversight into the refining industry and a state fuel reserve were discussed. Look for more state and federal inquiries into the price spike in the near future.
Categories: Wisdom from the Downstream Wizard