U.S. Records Another Record For Retail Gasoline

“The following is an excerpt from Tim Snyder’s “Weekly Quick Facts” newsletter. Tim is an accomplished economist with a deep understanding of applied economics in energy. We encourage you to visit Matador Economics and learn more about Tim. While there, you can sign up for his completely free Daily Energy Briefs and Weekly Quick Facts newsletters.”

Last week’s jump in retail gasoline gives the US another dubious record, the highest average price ever recorded. Diesel is tracking back into record territory, as well. Families and businesses alike across the country feel the pain of these economy-killing prices continuing to spike. In interviews across the US, economists are being asked how much higher can these prices rise. The answer is always sobering.

Gasoline Prices

With no intention of changing the direction the Biden Administration is heading, some are speculating that we may see diesel over $8.00 per gallon and gasoline over $6.00 per gallon by Mid-Summer.

We must remember that this time of year represents planting season for our nation's farmers and graduation for so many of our young folks. It also represents the beginning of the “Drive Season” and a time when families travel for vacation. Continue reading "U.S. Records Another Record For Retail Gasoline"

What Do The Macros Tell Us About The Market?

“The following is an excerpt from Tim Snyder’s “Weekly Quick Facts” newsletter. Tim is an accomplished economist with a deep understanding of applied economics in energy. We encourage you to visit Matador Economics and learn more about Tim. While there, you can sign up for his completely free Daily Energy Briefs and Weekly Quick Facts newsletters.”

When the macros make the market in energy and stay way out ahead of the U.S. Fed!

This week’s attention has been almost entirely on the U.S. Federal Reserve and raising the Discount Rate by 50 basis points. The Fed’s charge is to bring inflation back in line with the goals of a stable market. The problem is this, when the actions of the FED are either too weak or too late, when they finally do act, it may be ill-timed at the very least, if not outright wrong.

Over the last few weeks, we have seen the GDP turn negative at -1.4%. We saw the Consumer Price Index come in at an 8.5% rate, year over year, and we got the Producer Price Index came in at a 40-year high of +11.2%.

These macros alone showed the markets just how far U.S. inflation had gotten out of control. No matter how much the Fed, or the Treasury Secretary, said the word “Transitory,” they just couldn’t fool markets back into line. It takes action. The macros tell us the FED action is “too little and too late.” Continue reading "What Do The Macros Tell Us About The Market?"

Retail Fuel Prices Skyrocket

“The following is an excerpt from Tim Snyder’s “Weekly Quick Facts” newsletter. Tim is an accomplished economist with a deep understanding of applied economics in energy. We encourage you to visit Matador Economics and learn more about Tim. While there, you can sign up for his completely free Daily Energy Briefs and Weekly Quick Facts newsletters.”

Today’s fuel prices are showing us that with increasing demand, the price for refined products will continue to rise, even with a somewhat stalling crude oil price. Today’s EIA posting for On-Highway Retail Gasoline price was $4.107 per gallon. Remember, in 18 states, beginning this Saturday; the US EPA has mandated the more expensive “Summer Blend” of gasoline. This gasoline blend will stay in place until Mid-September, as demand remains strong and the temperatures are warmer this time of year.

Diesel prices look to be outpacing gasoline and the changes in crude oil prices as well. Monday’s EIA posting for On-Highway Retail Diesel price was $5.16 per gallon. These prices will soon eclipse the records we saw in March of this year. We were trading at $5.25 per gallon on March 14, 2022, and with diesel fuels' current supply issues, we will top this by Mid-May. This will push food prices higher and make planting time in the Agriculture space as expensive as it ever has been!

We’re still on an upward track on fuel prices! Continue reading "Retail Fuel Prices Skyrocket"

Truth Is, It's Not Just About Fueling EVs

“The following is an excerpt from Tim Snyder’s “Weekly Quick Facts” newsletter. Tim is an accomplished economist with a deep understanding of applied economics in energy. We encourage you to visit Matador Economics and learn more about Tim. While there, you can sign up for his completely free Daily Energy Briefs and Weekly Quick Facts newsletters.”

Truth, once again leads our headlines? Over the last two weeks, I have been busting my hump to prepare a presentation for an energy group, having a conference and I really dug deep to pull the data that really made sense for those who don’t ever see all the facts.

I went to 25 or 30 different sources and grabbed “Snippets” of data to use in my presentation and a solid theme began to develop. The theme was this, it’s not just about the EVs, it’s about the entire energy balance and how many BTUs it would take, to replace fossil fuels in the entire US economy. Here’s how much we produce by sector, each year.

Demand in Quads, by Sector. Continue reading "Truth Is, It's Not Just About Fueling EVs"