by Chris Black
Gas prices in the US are going up again, even if dementia in chief sucked dry the SPR (strategic petroleum reserve) trying to make good with his fan base before midterms.
Selling the country’s oil supply on a whim is similar to Roman Caesars in a declining empire selling Rome’s grain reserves in order to make money to keep people entertained with gladiator fights.
Here’s the deal:
$90 oil is supposed to correlate to $2.60-2.90 gasoline, not $4.00.
It also doesn’t cost $1 more per gallon to formulate 93 Octane.
Don't blame messengers! OPIS MarginPro shows retail gas margins are ~18cts/gal nationwide. That's down 17cts/gal in a week; 25cts/gal in a mo.; and 54cts/gal lower than end 1Q 2022. When one considers operating costs (labor, credit card fees, etc.) many stores are under water.
— Tom Kloza (@TomKloza) October 4, 2022
Historical margins on a gallon of gas at a station used to be $.05-.10 per gallon, not $.50.
Most of this BS is caused by contract manipulation through Wall Street.
The wholesale price of gas is massively disconnected from any function of supply and demand for actual product.
The reason why OPEC is cutting production is that real global demand has fallen off a cliff.
What does it mean?
Recession baby. Global recession.
Enjoy.