2-for-1 Friday: Bubble Map and Gasoline Price Spike Update
Link to article: https://stillwaterassociates.com/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.
Tags: gas prices, WisdomCategories: Wisdom from the Downstream Wizard