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Wholesale gasoline closed at $1.14-25/100 a gallon yesterday (Monday, November 24). That's up 13-1/2¢ a gallon from Thursday's (November 20) $1.00-70/100 closing price, the lowest close since the market topped out, basis the close on Friday, July 11, at $3.56-32/100 a gallon, leading to some to argue that the price downtrend since July 11 may have run its course.
Retail gasoline prices tend to be at a $0.75 to $1.25/gallon premium to the wholesale gasoline price as traded on the New York Mercantile Exchange, which would mean that a wholesale price of $1.14/gallon would indicate a retail price of $1.89 to $2.39/gallon, depending on where in the U.S. the retail pump might be located.
Wholesale gasoline closed at $0.93-64/100 a gallon yesterday (Tuesday, December 9).
Retail gasoline prices tend to be at a $0.75 to $1.25/gallon premium to the wholesale gasoline price as traded on the New York Mercantile Exchange, which would mean that a wholesale price of $0.94/gallon would indicate a retail price of $1.69 to $2.19/gallon, depending on where in the U.S. the retail pump might be located.
oil is supposed to drop to $25 a barrel by next year.
In order for crude oil to trade at $25.00 per 42-gallon barrel, and after assuming that the crack spread (the gross operating margin) will be around $5.00 per 42-gallon barrel and that the two main products -- gasoline and heating oil -- remain at their current 51% and 49% share of product value, respectively; then, under those circumstances, the wholesale price of gasoline and heating oil would then have to be 61¢ and 88¢ a gallon, respectively.
Retail gasoline prices tend to be at a $0.75 to $1.25/gallon premium to the wholesale gasoline price as traded on the New York Mercantile Exchange, which would mean that a wholesale price of $0.61/gallon would indicate a retail price of $1.36 to $1.86/gallon, depending on where in the U.S. the retail pump might be located.
In order for crude oil to trade at $25.00 per 42-gallon barrel, and after assuming that the crack spread (the gross operating margin) will be around $5.00 per 42-gallon barrel and that the two main products -- gasoline and heating oil -- remain at their current 51% and 49% share of product value, respectively; then, under those circumstances, the wholesale price of gasoline and heating oil would then have to be 61¢ and 88¢ a gallon, respectively.
Retail gasoline prices tend to be at a $0.75 to $1.25/gallon premium to the wholesale gasoline price as traded on the New York Mercantile Exchange, which would mean that a wholesale price of $0.61/gallon would indicate a retail price of $1.36 to $1.86/gallon, depending on where in the U.S. the retail pump might be located.
Merrill Lynch warned that oil prices could fall as low as $25 a barrel next year if the recession affecting the US, Europe and Japan extended to China, the main driver of demand growth in commodity markets in recent years.
Merrill’s warning came as oil prices sank below the $44 a barrel on Thursday, the lowest level in almost four years, in spite of dramatic interest rates cuts in the UK, Europe and Sweden.
Francisco Blanch, head of commodities research at Merrill Lynch, said his main scenario was for oil prices to average $50 a barrel next year, but warned: “A temporary drop below $25 is possible if the global recession extends to China.”
the sad thing is even if does go down to $65 a barrel, we will NEVER see gas or home oil below $2.50 a gallon. we are being ripped off from the oils companies, and no one is doing anything about it.
Huh...$1.52 here in MN. Those evil oil companies.
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