Crude essentially flat while gasoline, diesel and heating oil climb slightly
 

Unemployment is the finger in the dyke holding back higher prices... Fundamentals be damned!

Wayne Gerdes - CleanMPG - Nov. 7, 2009

Average price at the pump reaches $2.70 per with short term relief possibly just around the corner. Longer term however...

Crude

Today the Labor Department released a disappointing report showing the unemployment rate surged to 10.2 percent in October, reaching double digits for the first time in 26 years. With the overwhelming double digit unemployment rate as the backdrop, oil prices fell.

The Benchmark West Texas Intermediate (WTI) crude oil futures for December delivery fell $21.9 to settle at $78.43 on the NYMEX.

With over 15 million people now out of work, oil traders found little impetus to expect demand will return anytime soon...

Oil hasn't been able to push past $82 a barrel after the breakout from the $65 to $75 trading range it was in all summer as U.S. oil consumption dropped well below average for this time of year. With millions of people out of work, gasoline demand is below last years levels which are down significantly from the year before.

On a more seasonal basis, gasoline should be nearing a bottom in terms of price this time of year and we are experiencing nothing of the sort.

"If this is low tide (and I think it's a bit of a rogue high tide), then we are in trouble next spring," said Tom Kloza, chief oil analyst at the Oil Price Information Service.

On a more positive note, gasoline futures fell over $0.06 on Friday closing at $1.92 which should provide near term relief at the pump early next week.

Gasoline

The U.S. average price for a gallon of regular unleaded gasoline climbed 2 cents this week to reach $2.69 per gallon, the highest level of the year.

Prices ranged from a low of $2.56 per gallon on the Gulf Coast to a high of $2.91 on the West Coast.

The average in California was once again unchanged at $2.99 per gallon.

Diesel

The national average price of diesel fuel climbed a penny to $2.81 per gallon.

Just like gasoline, Gulf Coast residents are experiencing the lowest average price in the nation at $2.75 per gallon.

And California’s average rose about a penny to $2.97 per gallon.

Residential Heating Oil

Residential heating oil prices increased slightly during the period ending November 2, 2009. The average residential heating oil price rose a penny to reach $2.73 per gallon.

Wholesale heating oil prices dropped 7 cents per gallon reaching $2.07, over $0.07 cents per gallon lower than at this time last year.

Re: Crude essentially flat while gasoline, diesel and heating oil climb slightly
 

I tend to see it this way too. I am a bit worried because gas prices take no prisoners when oil execs start raking in windfall profits. I don't drive much as my commute is 14 miles/day round-trip and I really don't drive much on the weekends, so it's a bit difficult justifying getting a new car. I'll have to do some math for the benefits, as I'd love to have something much more fuel efficient.

Next year's choices seem to be a bit better and may cause the price of the insight to drop when the cruze and fiesta hit showrooms and possibly a hyundai hybrid?

My next car has to at least be a transition, however if the leaf is within my range and I can ride this out for a bit. That or the aptera would be enough for me for possibly a while to come.

Until then, I'll have to be on the look-out for some super deals as a strong economy (which should be coming soon) will not tolerate low gas prices as we've seen this year.

Re: Crude essentially flat while gasoline, diesel and heating oil climb slightly
 

Currently, US refineries are running at between 84% and 88% capacity compared to almost MAX in early 2008. Still stored finished fuel inventories are increasing due to decreased consumption. Further, some are predicting refinery utalization as low as 78% utilization by Spring 2010. This could easily FORCE SHUTDOWN of some of the less efficient domestic refineries.

Re: Crude essentially flat while gasoline, diesel and heating oil climb slightly
 

I do think we will see higher oil prices over the winter, but come spring of summer, I think thats when we will see much higher gas prices. Im not an expert by any means but thats just what Im thinking.

My commute is terribly long, 170km round trip but its mostly, non congested highway. My echo is amazing on the highway but sometimes I wish I could find a honda insight 1st gen, to drive but I do really like having that back seat.

Re: Crude essentially flat while gasoline, diesel and heating oil climb slightly
 

EchoMan, if you don't carry people in that back seat... it's over-rated. ;)

You'd be surprised what you can stuff into a first gen Insight.