-September 29,2023-
One quirky aspect of higher oil prices this year is that at consumers main interface with supply – at the gas pump – you can’t say the wholesale price has climbed.As you can see in these charts the price for gasoline is down 44 cents from the high this past April. Oil companies may not be passing this savings on to the motorists but the fundaments are there.During the same time for the past 6 months the price of WTI crude has raced higher by over $20 a barrel as exporters like Saudi Arabia and Russia have cut supply.
In California oil analyst Tom Kloza just reported the wholesale price of gasoline in LA just fell big time today.
“OPIS reports L.A. CARBOB at ~$3.67/gal this morning – –down 72cts/gal from Tuesday’s high. Recognize, however, that CA will lose about 50,000 b/d of gasoline output in 1Q24 when Phillips 66 goes to all renewables (Renewable diesel & SAF) in the Bay Area. Worth a calendar note.”
