$5.00 per gallon gas

[slimslob]

Re: $5.00 per gallon gas

.. I did. Great move! The oil industry is making record profits from Federal lands. They should pay more.

Who is making profit? Not the US oil companies. "It appears that somehow the definition of emergency now includes making a profit at the expense of American consumers because sooner or later a real emergency will hit and then it will be too late." And much of that released Strategic Reserve release is not going to US consumers.
Figures. Oil From Joe Biden’s Emergency SPR Release Is Heading to Europe- Not to US Consumers - Survival Magazine & News - Bushcraft Prepper Offgrid SHTF Blog & Conservative News

[slimslob]

Re: $5.00 per gallon gas

Rep. Austin Scott warns of 'global food shortage' as railroads limit U.S. fertilizer shipments | Just The News

[SalesServiceGuy]

Re: $5.00 per gallon gas

On the other hand Tesla car prices are also skyrocketing unfortunately. I mean buying a Tesla now is not that lucrative as it was say even a year ago.

... Tesla recently increased prices by 5-10% depending on the model yet continue to sell out their inventory. A base level introductory Tesla costs approx $50,000.00.

If you drive less than 300 km everyday, I think the payoff is still there with gasoline and maintenance costs at record highs.

If you spent $25.00 a day to operate and maintain your gas powered vehicle that equals $9k a year in savings. Tesla's are not that large inside especially for backseat passengers. Say you were to buy a very fuel efficient car for $30,000.00 after three years you are at break even with several years ahead of you of significant annual savings.

Tesla's are definitely the trendy car in demand by the market. To some people price is not the only consideration.

[Phil B.]

Re: $5.00 per gallon gas

US Faces Looming Catastrophe as Price of Diesel Hits All-Time High, Threatening Trucking Industry

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[SalesServiceGuy]

Re: $5.00 per gallon gas

US Faces Looming Catastrophe as Price of Diesel Hits All-Time High, Threatening Trucking Industry

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... in my area diesel is at record high prices. Diesel prices around the world are at record prices.

I have a trucking company as a customer and I asked the Owner a few days ago what he thought about prices and specifically Fuel Surtaxes. He thinks this week the surtax will surpass the actual cost of diesel. The surtax applies to customers with long term fixed contracts. These customers pay the contractual base charge plus the surtax.

The price of diesel effects many industries such as farming which uses a lot of heavy machinery.

Unfortunately, electric powered tractor trailers for the trucking industry are still many years away for widespread availability.

[avecosat]

Re: $5.00 per gallon gas

In Europe we are paying 7 Euros per Gallon ( 2.1 per liter ) but electricity is still increasing in price . Here what is sold the most are hybrids and even so it does not compensate the cost of the car.

[Phil B.]

Re: $5.00 per gallon gas

Mike Rowe Says Truckers He Knows Are Paying $1,200 Per Tank and Aren't Buying the 'Putin Price Hike'

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[bsm2]

Re: $5.00 per gallon gas

Sure the Russian invasion has Nothing to do with oil price's

[SalesServiceGuy]

Re: $5.00 per gallon gas

Mike Rowe Says Truckers He Knows Are Paying $1,200 Per Tank and Aren't Buying the 'Putin Price Hike'

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... they have the right to stick their head in the sand and blame whoever they want. The big price hikes in motor fuels are occurring all over the world.

[SalesServiceGuy]

Re: $5.00 per gallon gas

Diesel fuel is in short supply as prices surge — Here’s what that means for inflation

• Diesel fuel is in short supply as demand rebounds following the pandemic, while supply remains tight.
• Prices have surged to record levels, adding to inflationary concerns across the economy.
• The problem is especially acute on the East Coast, where prices have become “unhinged,” according to one analyst.
• Higher prices are “certainly going to translate into more expensive goods,” said GasBuddy’s Patrick De Haan.

Diesel prices are surging, contributing to inflationary headwinds due to the fuel’s vital role in the American and global economy. Tankers, trains, trucks and planes all run on diesel. The fuel is also used across industries including farming, manufacturing, metals and mining.

“Diesel is the fuel that powers the economy,” said Patrick De Haan, head of petroleum analysis at GasBuddy. Higher prices are “certainly going to translate into more expensive goods,” he said, since these higher fuel costs will be passed along to consumers. “Especially at the grocery store, the hardware store, anywhere you shop.”

In other words, the impacts will be felt across the economy.

Diesel’s surge

The jump in prices comes on the heels of growing demand as economies around the world get back to business. This, in turn, has pushed inventories to historic lows. Products like diesel, heating oil and jet fuel are known as “middle distillates,” since they are made from the middle of the boiling range when oil is turned into products.

U.S. distillate inventory is now at the lowest level in more than decade. The move is even more extreme on the East Coast, where stockpiles are at the lowest since 1996. Diesel and jet fuel at New York harbor are now trading well above $200 per barrel, according to UBS.

Europe’s move away from dependency on Russian energy is hastening the rapid price appreciation. The bloc currently imports around 700,000 barrels per day of diesel from Russia, according to Stephen Brennock at brokerage PVM.

″[T]he tightness in global supply will be exacerbated by the EU’s proposal to ban Russian oil imports,” he said. “The ban, if approved, will have an outsized impact on product markets and especially diesel….There is now growing anxiety that Europe might run out of diesel.”

Energy consultancy Rystad echoed this point, saying that the loss of Russian refined products is going to make diesel shortages in Europe “more acute.”

Refiners can’t just ramp up output to meet surging demand, and utilization rates are already above 90%. In the U.S., refining capacity has decreased in recent years. The largest refining complex on the East Coast — Philadelphia Energy Solutions — shut down following a fire in June 2019.

Several refiners are now being reconfigured to make biofuel, which has also reduced capacity.
Some refiners are also undergoing routine maintenance checks that were overdue following the pandemic. These facilities typically run flat out – 24 hours a day, seven days a week – and so at some point the machinery needs to be checked.

The East Coast relies heavily on other areas of the country for refined products, De Haan said. Now, Europe is competing for these same fuels as it turns away from Russia.

‘Unmoored’ prices

A common saying in commodity markets is “the cure for high prices is high prices.” But that might not be the case this time around. According to UBS, distillate demand tends to be less elastic than gasoline prices.
In other words, while high prices at the pump might deter consumers, if a business needs to get goods from point A to point B, it’s going to pay those higher prices.

Tom Kloza, head of global energy research at OPIS, said that in years past a barrel of diesel typically sold for $10 above the price of crude oil. Today, that differential – known as the crack spread – has surged to a record high above $70.

“It’s become untethered, unmoored, a little bit unhinged. These are prices we’re not used to seeing,” he said, adding that there are large price differences across the U.S.

Kloza said diesel at New York harbor is now trading around $5 per gallon, while jet fuel prices at the harbor, which usually mirrors diesel prices, are around $6.72. That equates to roughly $282 per barrel.

“These are numbers that are not just off the charts. They’re off the walls, out of the building, and maybe out of the solar system,” he said.

Retail diesel prices are also surging. On Friday the national average for a gallon hit a record of $5.51, according to AAA, after hitting a new high every single day over the last week.

Higher diesel prices is translating to higher profit margins for refiners, who are now incentivized to make as much as they possibly can. At a certain point, this could lead to tightness in the gasoline market, pushing up the high prices consumers are already seeing at the pump.

In the meantime, consumers can expect prices for goods to keep on climbing.

“It’s going to be a double whammy on consumers in the weeks and months ahead as these diesel prices trickle down to the cost of goods — another piece of inflation that’s going to hit consumers,” GasBuddy’s De Haan said, adding that the full impact of the recent surge in prices has yet to be felt.

[slimslob]

Re: $5.00 per gallon gas

'''Nowhere near the bottom,''' top economist says as global markets crater

[slimslob]

Re: $5.00 per gallon gas

Biden’s bread line crisis? Anatomy of the American baby formula shortage | Just The News

[Phil B.]

Re: $5.00 per gallon gas

It's causing a panic all over the country.
Food Lion ( groc store ) is limiting # of cans/bags per trip.
Saw one lady get busted... she got her limit.. went to the car dropped it off .. went back in and went to the same Cashier. Girl said no ma'am you got your limit .. she threw a fit and was escorted to her car.. where the mgr saw that other purchase sitting in plain view.
Mgr borrowed the 'lady's' NCDL .
Photocopied it and put her on the " Do Not Serve this female " We made 1 copy for each cashier. [emoji28][emoji1787][emoji23]

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[SalesServiceGuy]

Re: $5.00 per gallon gas

It's causing a panic all over the country.
Food Lion ( groc store ) is limiting # of cans/bags per trip.
Saw one lady get busted... she got her limit.. went to the car dropped it off .. went back in and went to the same Cashier. Girl said no ma'am you got your limit .. she threw a fit and was escorted to her car.. where the mgr saw that other purchase sitting in plain view.
Mgr borrowed the 'lady's' NCDL .
Photocopied it and put her on the " Do Not Serve this female " We made 1 copy for each cashier. [emoji28][emoji1787][emoji23]

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The FDA is ‘working around the clock’ to address baby formula shortage, Psaki says.


White House press secretary Jen Psaki said Monday that the US Food and Drug Administration is “working around the clock” to address the baby formula shortage, as manufacturers say they’re producing at full capacity and making as much formula as they can – but it’s still not enough to meet current demand.

“The FDA issued a recall to make sure that they’re meeting their obligation to protect the health of Americans – including babies who, of course, were receiving or taking this formula – and ensure safe products are available. That’s their job,” Psaki said.

“Ensuring the availability is also a priority for the FDA and they’re working around the clock to address any possible shortage,” she added.

Psaki said the FDA is taking “a number of steps” to address the issue, including working with major infant formula manufacturers to ensure their increasing production and working with the industry to optimize supply lines, product sizes and prioritizing product lines that are of greatest need.

“The FDA, it is not just their responsibility in their view to ensure that we’re meeting our obligations to protect Americans, it is also their obligation to take steps to make sure supply can be met when they take these steps,” Psaki said.

Psaki also said she didn’t believe there was national stockpile of baby formula when asked.
For months, stores nationwide have been struggling to stock enough baby formula. Manufacturers say they’re producing at full capacity and making as much formula as they can, but it’s still not enough to meet current demand.

The out-of-stock rate for baby formula hovered between 2% and 8% in the first half of 2021, but began rising sharply last July. Between November 2021 and early April 2022, the out-of-stock rate jumped to 31%, data from Datasembly showed.

That rate increased another 9 percentage points in just three weeks in April, and now stands at 40%, the statistics show. In six states – Iowa, South Dakota, North Dakota, Missouri, Texas and Tennessee – more than half of baby formula was completely sold out during the week starting April 24, Datasembly said.

The shortage has been exacerbated by the FDA’s shutdown of an Abbott Nutrition facility in Sturgis, Michigan. Abbott is a major producer of baby formula.

In February, the FDA recalled three brands of powdered baby formulas made by the company due to potential bacterial infections, including Salmonella. The agency advised parents not to buy or use certain batches of Similac, Alimentum and EleCare powdered infant formulas, all Abbott brands.

... it is not uncommon for people to hoard any kind of goods when there is a national/ global shortage.

[slimslob]

Re: $5.00 per gallon gas

https://www.washingtonexaminer.com/restoring-america/faith-freedom-self-reliance/manufacturers-under-pressure-from-surging-dollar-as-fed-grapples-with-inflation