Gas Prices Surge To Highest Ever On This Day At Fastest Pace In Four Years
by Tyler Durden
Despite being weeks away from the start of the driving season proper, gas prices – at the pump – have been surging recently. With premium now over $4 nationwide (over $5 in SoCal – up 25 days in a row), this is the most expensive gas has ever been for the second week in February despite gasoline being relatively well supplied. Gasoline futures have ripped higher as unplanned maintenance, refinery closings, and rising crude oil prices (seemingly more central bank liquidity-driven than middle-east tensions) have impacted wholesale price expectations (and thus retail). The 44c rise is the fastest in four years and the year-to-date surge over 12% (outpacing stocks) is almost four times faster than average. What is more worrisome is the fact that seasonally the next month or two are when the biggest price spikes occur – which coupled with the tax-hike drag, will inevitably eat into people’s spending habits and sentiment.