Continue reading Oil prices fall on inventory report

Oil prices fall on inventory report originally appeared on BloggingStocks on Wed, 23 Sep 2009 14:20:00 EST. Please see our terms for use of feeds.

Continue reading Oil falls on weekly inventory report

Oil falls on weekly inventory report originally appeared on BloggingStocks on Wed, 26 Aug 2009 18:00:00 EST. Please see our terms for use of feeds.

Continue reading No relief for U.S. drivers: Oil jumps above $70

No relief for U.S. drivers: Oil jumps above $70 originally appeared on BloggingStocks on Mon, 03 Aug 2009 16:20:00 EST. Please see our terms for use of feeds.

Last summer we lamented the price of gas. This year, however, there's at least one upside. Retail sales for June were up 0.6% - substantially better than the 0.4% anticipated - with the gas prices leading the charge. A slight tip in the brutalized auto manufacturer sector helped, as well. This was the largest retail sales increase in five months.

Gas stations benefited from the cost of fuel, adding a bit of pep to a beleaguered retail industry: sales were up 5% year over year, after doing the same in May. And, car dealers had their best month since January: the sales of cars and parts climbed 2.3%. Nonetheless, this corner of the retail world is still off 14.5% from last year. It may have helped last month, but we're still pretty far from a cure.

Continue reading Gas prices drive retail sales rebound, coveted brands still struggle

Gas prices drive retail sales rebound, coveted brands still struggle originally appeared on BloggingStocks on Tue, 14 Jul 2009 16:45:00 EST. Please see our terms for use of feeds.

Nevertheless, the government says "not to worry about inflation." Well if you look more closely you'll find that gas prices actually rose 3.5% in May with crude oil prices trading near $72.00 per barrel.

Continue reading CPI rose only 0.1% in May. Is inflation dead?

CPI rose only 0.1% in May. Is inflation dead? originally appeared on BloggingStocks on Wed, 17 Jun 2009 13:50:00 EST. Please see our terms for use of feeds.

Here we go again! Remember last year when gas cost over $4 per gallon? Would you believe that soon we'll be pushing $3 per gallon?

What's happening in the oil patch to cause this rapid jump? US oil traded up $2 per barrel to $70.09 per barrel. London Brent crude rose $1.80 per barrel to $69.68. Prices are as of 2:27 pm EDT.

The price driver was a forecast by the US Energy Information Administration forecasting a jump of 10,000 barrels per day for 2009. This is the first time that the EIA has raised its estimates since last September.

Continue reading What is causing oil to trade above $70 per barrel?

What is causing oil to trade above $70 per barrel? originally appeared on BloggingStocks on Tue, 09 Jun 2009 18:30:00 EST. Please see our terms for use of feeds.

Continue reading Another strong move for oil prices

Another strong move for oil prices originally appeared on BloggingStocks on Mon, 01 Jun 2009 15:20:00 EST. Please see our terms for use of feeds.

Continue reading Oil closes out the week strong

Oil closes out the week strong originally appeared on BloggingStocks on Fri, 29 May 2009 17:40:00 EST. Please see our terms for use of feeds.

Continue reading Oil pushes through $45

Oil pushes through $45 originally appeared on BloggingStocks on Thu, 26 Feb 2009 16:35:00 EST. Please see our terms for use of feeds.

ConocoPhillips (NYSE: COP) fourth-quarter earnings report provided a stark contrast to the high-flying results being reported by the oil companies when gasoline prices exceeded $4 by a substantial amount in some markets.

For the quarter, ConocoPhillips reported a loss of $31.8 billion. resulting from the write down of certain assets, including goodwill put on the books after several recent acquisitions.

Continue reading ConocoPhillips running out of gas?

ConocoPhillips running out of gas? originally appeared on BloggingStocks on Fri, 30 Jan 2009 11:30:00 EST. Please see our terms for use of feeds.

Continue reading Serious Money: Barron's pumping oil again!

Serious Money: Barron's pumping oil again! originally appeared on BloggingStocks on Mon, 26 Jan 2009 12:12:00 EST. Please see our terms for use of feeds.

This morning my wife asked me this question and I had no idea how to answer it. But it's true that oil is down -- it trades at $34.39 a barrel; while gasoline prices have been rising between 10 and 20 cents a gallon from the low. I paid $1.66 a gallon for mid-grade three weeks ago and $1.79 for mid-grade last week. So what's the answer? Less supply because refiners shut down for regular maintenance during this time of year.

While this may not be true throughout the country, it appears to be so in California. In late December, The MercuryNews predicted that gasoline prices would rise 10 to 20 cents a gallon. Why? California refiners including Exxon-Mobil (NYSE: XOM) and Chevron (NYSE: CVX) cut back on production for their usual maintenance needs in January. Moreover, a BP plc (NYSE: BP) plant in Carson, CA , had mechanical problems that affected production.

Overall this means lower supply with demand remaining relatively constant. California's Energy Commission reports that production of CA's gas blend fell 11% in January from the previous month. In the short run, prices should fall back as these refineries go back to normal production. But experts predict that gasoline prices nationwide could hit $2.50 a gallon nationally this summer.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College. Portfolio recently published his eighth book, You Can't Order Change: Lessons From Jim McNerney's Turnaround at Boeing. He has no financial interest in the securities mentioned. He has no financial interest in the securities mentioned.

If oil is down, why is gasoline up? originally appeared on BloggingStocks on Tue, 20 Jan 2009 12:50:00 EST. Please see our terms for use of feeds.

Oil is trading around $50 a barrel. Gas prices are about $1.80 and could drop another dime or two. That is a long way from the $4.15 drivers were paying in the summer.

A family of modest means, making perhaps $35,000 a year, might have a mortgage of $500 a month. After taxes, the family's real income is probably less than $2,200 a month. Father and mother both drive to work: round-trip, 20 miles each, every day. The difference between $4.15 gas and $1.60 could be as much as $500 a month if each of them use about 100 gallons of gas a month.

Welcome to the lower gas price economy. For people who use home heating oil the difference is even more profound.

OPEC's plan to keep oil prices where they are could go a long way to saving the U.S. economy. The family that spends $500 a month less on gas has an easier time making mortgage payments and is less likely to slip into default or foreclosure. That family might even have a little money to spend on holiday gifts.

The next time you run into an OPEC minister on the street, shake his hand and thank him.

Douglas A. McIntyre is an editor at 247wallst.com.

Do lower oil prices save the economy? originally appeared on BloggingStocks on Tue, 02 Dec 2008 09:58:00 EST. Please see our terms for use of feeds.

It wasn't that long ago that we were feeling the full brunt of record high gasoline prices. It was July 17, in fact, when the national average hit its peak of $4.114 a gallon. While prices are still running at historically high levels, they have come well off their summer highs, and are currently sitting at an average of $3.48 a gallon nationwide for regular unleaded. A pretty nice pullback, to say the least.

Continue reading If nothing else, gasoline prices are falling!

If nothing else, gasoline prices are falling! originally appeared on BloggingStocks on Tue, 07 Oct 2008 17:40:00 EST. Please see our terms for use of feeds.

Continue reading Oil inventories drop more than expected

Oil inventories drop more than expected originally appeared on BloggingStocks on Wed, 17 Sep 2008 14:00:00 EST. Please see our terms for use of feeds.

We can all sense it even without looking at the numbers -- gas prices rose very quickly when oil prices had their huge run-up, but since oil prices started falling, gas prices didn't match the declines. Indeed, since oil reached its record price of $147.27 a barrel on July 11, it dropped over 26% to around $107-108 today. Gas prices peaked at $4.14 a gallon on July 17, but have fallen only 10% since. Comparing weekly data from the EIA shows a similar, if less extreme, picture. Why is that?

Economists differ in their views of why this asymmetric pricing happens. In the case of gasoline, it seems to be the "fault" of the consumer. Since information about oil prices is readily available, consumers know what to expect even before they go to the pump, therefore behaving differently during times of rising and falling oil prices. This, in turn, limits or allows for larger gasoline price changes.

During times of rising oil prices, consumers are very price conscious and shop for deals. Sure, since gas stations take delivery often, they'd be eager to pass on the price increases to consumers immediately. But as most consumers comaprison shop, gasoline retailers are limited by the amount they can hike up prices.

Continue reading Why do gas prices stay high? It's the consumer's fault!

Why do gas prices stay high? It's the consumer's fault! originally appeared on BloggingStocks on Wed, 03 Sep 2008 14:35:00 EST. Please see our terms for use of feeds.

Beyond the torment it has already caused in the Carribbean and the stress it places on those who are evacuating the Gulf Coast, hurricane Gustav will lead to higher prices at the pumps. That's because the majority of the Gulf of Mexico's oil production is shut down in anticipation of Gustav's force.

Exactly how much production is being shut down? CNNMoney reports that "energy producers have shut in approximately 77% of oil output and 37% of natural gas production in the Gulf of Mexico." This is affecting three producers particularly hard -- Royal Dutch Shell PLC (NYSE: RDS.A), BP PLC (NYSE: BP) and Chevron Corp. (NYSE: CVX).

And the production shut-down is significant -- "nearly 1 million barrels of daily oil production is now shut down. The last time this happened was in November 2005, after Hurricanes Katrina and Rita. In addition, 2.75 billion cubic feet of daily natural gas production is now shut down" according to CNNMoney.

Continue reading Gustav could cost you $5 a gallon at the pumps

Gustav could cost you $5 a gallon at the pumps originally appeared on BloggingStocks on Sun, 31 Aug 2008 09:15:00 EST. Please see our terms for use of feeds.

The Associated Press reports that in San Antonio, TX, premium unleaded sold for 38 cents a gallon. That's what I call a bargain -- particularly since I considered myself lucky to pay $3.87 a gallon for mid-grade earlier this afternoon.

It turns out that there is a little problem with this 38-cents-a-gallon gas. It was a mistake in the pump. AP interviewed Dill Food Market's Manager, Jim Duke, who said that the premium was supposed to be selling for $3.89 a gallon. AP also reports that WOAI-AM was the original source for this story and it said that "nobody reported the mistake, which apparently started Tuesday afternoon."

It took a while for Duke to figure out what was going on. AP reports that he noticed "a lot of vehicles were being filled with premium and people were paying at the pump." He went out to check Wednesday and noticed the price error. Maybe ExxonMobil (NYSE: XOM) can spare a little of its $41 billion in profit to reimburse Duke for his pump malfunction.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

Premium gasoline sells for 38 cents a gallon this week originally appeared on BloggingStocks on Thu, 14 Aug 2008 16:50:00 EST. Please see our terms for use of feeds.

Continue reading Rising dollar pushes oil prices lower

Rising dollar pushes oil prices lower originally appeared on BloggingStocks on Fri, 08 Aug 2008 13:48:00 EST. Please see our terms for use of feeds.

Exxon Mobil Corp.

Continue reading Exxon Mobil's big miss (XOM)

Exxon Mobil's big miss (XOM) originally appeared on BloggingStocks on Thu, 31 Jul 2008 09:09:00 EST. Please see our terms for use of feeds.