Gas Price Controversy

Gas Price Controversy
Good Morning!

Gas Prices
Keep hearing stories about the price of gasoline going down in California or Texas? Note on my desk this morning about gas prices in Houston down 12 cents a gallon. The note said they expect to see prices at about $1.80 a gallon soon.
Meanwhile over in Portland, Oregon gas remains at $2.28 a gallon. The Automobile Club of Southern California gave out the story that indicators pointed to lower prices. In the coming weeks. Really!

We of course don’t hear stories like that nor should we expect to.

Is it not true now that Alberta supplies more crude to the U.S. than Saudi Arabia?

This past week the OPEC countries said they would put another 2 billion barrels a day on the market. That would be the largest increase in six years. Then they'll add another 500,000 barrels in August.

Oil prices have jumped 20% this year to date.

It is really difficult to know what will happen in the near future. These key indicators like the Americans getting ready for lower prices at the pump, suggest prices are going to fall. Sit back folks. That’s not going to happen. They will not return to the price we were paying at the beginning of year anytime soon.

Here is a question that isn’t being answered is this bump up in barrels from the Middle East. Is the crude coming from new oil being pumped or is this just the OPEC countries readjusting these quotas they set. Or is this just oil they are already pumping? Interesting question don’t you think?

The crude for the gasoline we are buying now has been in the country for at least three or four months. That’s how far ahead supplies are required. The oil companies are going to report huge profits and we are all going to get angry once again. What the refiners are buying now is at the $42.33 a barrel cost. That will be in our system for the next four months.
When you hear that England is paying over $5 a gallon for their cars you know we still have a good deal, although that’s probably a difficult one to sell.

One very important item in our favor at the moment is that the OPEC countries are seeking to prevent near record prices slowing down the world’s economic growth.

It affects the Royal Families and their major business interests in the balance of the world.

The world is getting smaller everyday.