Chief gas-price storyteller

I apologize I just could not help myself. Enough of the silly excuses for why gasoline is changing price. Who pays Dan McTeague to make these extremely creative statements?

Here is a chronological list of quotes, one of which is not attributable to McTeague to highlight the creativity in reasons for pricing fluctuation. Just tell us we are “over a barrel” – pardon the pun.

My favourite creative excuse has to do with price increases at the pumps due to a solar eclipse.

To do some due diligence of your own, check out the historical rates for gasoline — five-history for West Texas Intermediate Crude and one for RBOB Gasoline on NYMEX — with the following links:

https://www.bloomberg.com/quote/CL1:COM and https://www.bloomberg.com/quote/XB1:COM

It is noteworthy that futures of RBOB Gasoline are trading lower and U.S. output of gasoline is almost at an all time high. With that being said, inventories are hitting a record low because of U.S. export success. Therein, probably lies the real reason. The market data allows and supports manipulation of the pump prices. I am no expert, but enough with the BS excuses.

Then like me, you can ponder why we even bother wondering what the excuse is.

From what I see, both oil and gas are a long way off historical values and are relatively stable so the only area to line pockets is from the pumps with any flimsy excuse necessary to do so.

March 2015 Prices going up.

“It’s a little bit like running after the sun as it falls, or a mirage in the desert: The further you run, the further it seems to be elusive,” McTeague said.

He blames a mix of everything from high taxes to issues with U.S. refineries and changing American driving habits for the Lower Mainland’s situation.

Over the last six months, oil prices have fallen from about $80 a barrel to about $50.

May 12, 2016 Prices going up (but they don’t come down for the opposite reason.)

McTeague said wholesale prices for gas have climbed five cents in the last two days.

He said that means gas stations in most parts of B.C. could push their retail prices as high as $1.12 per litre by Friday, although he estimates the increase will be short-lived.

July 2016 Prices going down

McTeague attributes that to an "abundance of supply" by U.S. refineries meeting North American demand as well as international political upheaval and its effect on oil prices.

March 2017 (Exactly where does our gas come from?)

“My expectation of $1.40 will be easily exceeded,” said McTeague. “At the current $1.38.9, we’re at a 13-cent-per-litre retail margin. Tomorrow at this time, we’ll be paying $1.41.”

McTeague said it’s mostly due to disruptions in two refineries in Washington state: Phillips 66 in Ferndale and BP Cherry Point.

April 2017 (It’s OK, that was not us, we get our gas from Chicago area… wait a minute it was us)

On Wednesday, fuel analyst Dan McTeague of GasBuddy.com said he suspects the recent spikes are due to the turnaround time for the Phillips 66 Ferndale refinery just south of the border in Washington state being delayed. Speculators are concerned there isn’t enough gasoline with such high demand.

August 2017 (A-ha. So no another analyst says we get our gas from West Coast US. Phew now it almost makes sense)

But Keith Schaefer, editor of Oil and Gas Investments Bulletin, said pumps in Western Canada are generally insulated from production issues in the Gulf Coast.

"We shouldn't see much impact at all," Schaefer told CTV News. "We get most of our refinery products from the West Coast of the United States and Alberta."

August 2017

Gasbuddy.com senior analyst Dan McTeague told Global B.C News that the hike in retail gas prices is attributable, in part, to tomorrow's solar eclipse.

That's because gas stations in the Pacific Northwest are loading up on supplies in expectation of increased traffic, which is enabling oil companies to sell their product at higher prices.

August 2017

Dan McTeague, senior petroleum analyst with GasBuddy.com, also noted there is a sizeable stockpile of oil and gas, so supply shouldn't be an immediate concern.

The demand for gas is also expected to diminish come September.

September 2017

Petroleum industry analyst Dan McTeague of gasbuddy.com had warned motorists not to fill up Tuesday because a five cent a litre price drop was on the way Wednesday with the seasonal shift to cheaper “winter spec” gas.

And now…

November 2017 (Do we get it from the Gulf and Midwest or don’t we?)

Spokesman Dan McTeague says prices are expected to remain high across Western Canada due to a spike on the Chicago Mercantile Exchange and the shutdown of the Explorer Pipeline, which delivers fuel from the U.S. Gulf Coast to much of the Midwest. 

By now, if you are as confused as me. Bottom line, it does not matter, we are a pawn on the chessboard.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.