GasBuddy Official Blog

The end all verdict to A/C vs. windows down!

Patrick DeHaan — Fri, 22 Jul 2011 12:41:20 GMT

There have long been battles between people investigating A/C vs. use of windows, so let's face it, will we ever find a true solution that always holds true? Perhaps not, but we may get close. For the ultimate verdict I was going to compare several credible sources and ultimately see if there was any sort of rhyme or reason to their research and testing, if they did any. First up? HowStuffWorks.com. While definitely not a leading researcher, they've looked at published reports from credible sources and seemingly have a good fix on this battle. Taken directly from HowStuffWorks.com, "Based on a study conducted by the Society of Automotive Engineers (SAE), driving with the windows up and the air conditioning on is typically a more fuel-efficient way to drive [source: Hill]. We'll get around to discussing when air conditioning isn't a more efficient option, but let's first take a look at what the SAE found. The SAE study was conducted at a General Motors wind tunnel and on a desert track. In the wind tunnel, air was forced over the front of the car and also from an angle on the front of the car to simulate a cross wind. In the desert, temperatures and vehicle speed were factored into the study. Two vehicles were used in the test, one was a full size SUV with an 8.1-liter V-8 engine and the other was a full-size sedan equipped with a 4.6-liter V-8 engine. Overall, both studies showed that driving with the windows down has a significant negative effect on the fuel efficiency -- more than using the vehicle's air conditioner. For the sedan, when the windows were down, the efficiency was reduced by 20 percent, while the SUV fuel efficiency was reduced just 8 percent [source: Hill]. These differences are an important factor in determining just how much the windows down option will affect the fuel efficiency of your vehicle. The study concluded that the more aerodynamic the vehicle, the more drag open windows will create. When driving at speeds of more than 55 miles per hour (88.5 kilometers per hour) with the windows down, there's a decrease in fuel efficiency of 20 percent or more. Although using the air conditioner decreases fuel efficiency as well, cooling the air through the compressor only decreases the fuel efficiency by about 10 percent [source: Arthur]. So, when traveling at speeds around 50 miles per hour (80.5 kilometers per hour) or faster, air conditioning is usually a better bet, but what about when you're simply cruising around town? Keep reading to find out how you can save a little bit of fuel on those slow-speed short trips." So HSW says that for faster speeds, A/C is better. Now on to the Chicago Tribune, another credible source: "The higher the speed, the more wind resistance affects mileage. So, you may be saving gas by driving with the windows open and the AC off at 25 mph. But at 55 mph and faster your vehicle's aerodynamics are increasingly degraded by open windows. At highway speeds you may get better mileage with the windows up, but it may still not be better than it would be with the AC off. "Poking around city traffic, aerodynamics doesn't come into the picture very much," said auto air-conditioning guru Ward Atkinson. The auto engineering consultant worked on some of General Motors' first auto AC systems in the mid-1950s. He's a regular speaker on climate control at Society of Automotive Engineers confabs. While wind resistance from running at highway speeds with your windows down may eat up more gas than running windows-up with the AC on, there is no escaping the fact that "it takes energy to cool a car," Atkinson said." So the ultimate answer- WHEN is best to use A/C over windows and vice versa? If you're driving under 45mph or so, using your windows is better. If driving faster than 45mph or so, using the A/C to keep cool is better. So, the verdict does appear unanimous! Use that A/C on faster roads or highways, but not while in the city or traffic. Another myth busted....

Protect Your Vehicle from Theft!

Gregg Laskoski — Thu, 21 Jul 2011 13:52:13 GMT

Did you know the dog days of summer are prime time for auto theft? That’s right. According to the National Highway Traffic Safety Administration the top two months for vehicle theft are July and August! Car theft can happen anywhere and anytime, but it’s important to remember that often these are “crimes of opportunity” and it can be our own careless mistake that makes the ‘opportunity’ too good to resist! So a few words of advice may be in order… • Don’t leave your car running because “it’s just a quick stop at Dunkin Donuts” or, you’re “only running into the store for a LOTTO ticket” • Always take your key; don't leave it in or on your vehicle. • Close and lock all windows and doors when you park. • Park in well-lit areas - in a garage, if possible. • Never leave valuables in your vehicle, and in sight. • When you’re stopping for gas, take your car keys out of the ignition. If you have to go inside the store to purchase something, lock the vehicle. NHTSA says we’re all susceptible to vehicle theft, but some of us are more likely to have to make that phone call or visit to the police department. These are the states that are the worst for auto theft: 1) California; 2) Florida; 3) Texas; 4) Illinois; 5) Georgia; 6) Nevada; 7) Maryland; 8) North Carolina; 9) Arizona 10) Missouri and New Jersey (it’s a tie). Additionally, NHTSA notes that audio equipment and wheel covers aren’t the only items that get grabbed…especially popular are air bags, GPS units, iPods, laptops and purses. Click here to see the model cars in greatest demand: NHTSA's List of Cars Most Often Stolen...

DOE report highlights

Patrick DeHaan — Wed, 20 Jul 2011 10:39:04 GMT

The Department of Energy released its weekly report on the condition of petroleum inventories in the United States today. Here are some highlights: Crude oil inventories decreased by 3.7 million barrels to a total of 351.7 million barrels. At 351.7 million barrels, inventories are 1.7 million barrels below last year (-0.5%) and are slightly above average. Supply at NYMEX delivery point, Cushing, Oklahoma rose 0.9 million barrels to 36.7 million barrels this week. Gasoline inventories increased by 0.8 million barrels to 212.5 million barrels. At 212.5 million barrels, inventories are now 9.7 million barrels, or 4.4% lower than last year (last week that number was 4.3% lower). Regions posting gains in inventories last week were the Gulf Coast (+0.2mb), the Rockies (+0.0mb), and the West Coast (+0.6mb). Decreases were seen on the East Coast (-0.1mb) and the Midwest (-0.1mb). Distillate inventories increased by 3.4 million barrels to a total of 148.5 million barrels. At 148.5 million barrels, inventories are now 10.9% lower than a year ago. Supply of distillate fuel (diesel, industrial fuels) is down an average of 2.5% over the last four weeks (last week the number was 5.2% lower than last year). Distillate inventories are 18.1 million barrels lower than their year ago level....

When Driving is No Longer Safe For Mom or Dad

Gregg Laskoski — Tue, 19 Jul 2011 13:08:00 GMT

Nobody wants to have “the conversation.” But, it’s a fact of life. Aging affects one’s ability to drive. Many of us may already know that the time for our aging parents to give up the car keys was last year. But how can you successfully discuss this delicate subject and persuade mom or dad to surrender the car keys… and not disown you? Experts on elder care offer the following: • Be respectful. For many seniors, driving is synonymous with their independence. Take away their autonomy (and their car) and you’re pushing them toward a jarring, unattractive reality. Expect strong resistance. Nonetheless, with everyone’s safety being the top priority, you cannot be intimidated or back down if you have a real concern. Who should initiate and lead the conversation? That’s the person who is least in need of sensitivity training. • Cite specifics that triggered your concern: It’s easy to dismiss comments like “you just can’t drive safely any more…” But if you offer specific concerns that you have noticed, such as “you have more difficulty now turning your head than you used to”, or “you’re not braking early enough and instead you’re braking suddenly; I noticed this the last time we drove…” you may have their attention. • Find consensus. If more than one family member or close friend has noticed, it’s less likely to be perceived as ‘ganging up’ on mom or dad. A loved one may also listen to a more impartial party, such as a doctor or longtime friend who’s voluntarily surrendered his keys. Remember, a trusted doctor’s recommendation may nullify a great deal of resistance. • Help find alternatives. The person you’re trying to persuade may be so used to driving that he or she has never considered any other option. Offer practical transportation alternatives. If your family member is reluctant to ask for help, it can lead to isolation, anger and depression. • Understand the difficulty of the transition. There’s no getting around the fact that is viewed as a loss. Don’t dismiss their feelings but try to help with the transition as much as possible, focusing on the positives—the fact that they made the right decision in time, before there were tragic consequences to themselves or other family members or friends. • Recognize that if the discussion is going too smoothly, something is wrong. Agreement and cooperation that comes too quickly should make you suspicious. Trust your mom or dad but be sure that they haven’t outsmarted you. If you consider yourself independent and resourceful, remember who taught you how to overcome the obstacles. It’s just that now the obstacle is you and you have to watch them! To help ease the transition and make it easier for them to get around, you may want to click on this AARP site: AARP Assistance for senior mobility...

Weekly gasoline outlook

Patrick DeHaan — Mon, 18 Jul 2011 11:26:18 GMT

Another week, another gasoline price forecast. Last week, I forecasted that gasoline prices in the U.S. would rise to an average of $3.70 by today. Currently, the average stands at $3.67, so thankfully, the increase wasn't as bad as expected. I forecasted prices in Canada to rise to 125.4c/L, but they rose to 125.5c/L, slightly higher than expected. This week there is additional uncertainty on the horizon as we started the morning off with some concern about debt problems floating around more of Europe. There are concerns Italy and Spain may now be on the brink of a similar situation to that of Greece. Such news is causing concern on the market, concern that it could slow recovery and result in a drop in demand for petroleum. With that news, oil is down slightly while gasoline futures are down a few cents per gallon as well. While I believe much of the U.S. will see continued increases in gasoline prices, Canada has likely already seen a majority of the increase. This situation that we're currently seeing makes forecasting a bit more difficult as we see rising retail prices, but we may see falling wholesale prices. Not to mention that today is only the first trading day in the week and much can change. I think while wholesale prices of gasoline may drop later in the week, retail prices, the price you and I pay at the pump, will likely rise in two-thirds of the United States, an average of 2-5 cents per gallon. In Canada, I'll say about half of stations will rise between 1-3c/L. That means by next Monday, the U.S. national average may rise to $3.71, while the average price in Canada may rise to 126.5c/L. Tropical Storm Bret also has developed, but is expected to veer away from land. We'll continue to watch such developments....

Is Obesity an Indicator of Future Driving? Study Says It Is

Gregg Laskoski — Fri, 15 Jul 2011 13:42:06 GMT

Two recent studies on obesity tell us we need to make healthy choices, and one of these studies reported in The Economist discusses what it calls “a striking relationship” between obesity and driving. The Economist says Americans are getting fatter: obesity rates have risen 74% in the past 15 years to nearly 28% of the adult population. And they are driving more: the number of vehicle miles traveled by each licensed driver (VMT/LD), excluding commercial vehicles, increased by an average of 0.6% a year between 1988 and 2008. Academics at the University of Illinois say there’s a striking correlation between these two variables—but with a large time lag. They noted that previous research had found that changes in diet had an effect on body weight only after some six years. Therefore VMT/LD in 2004 is correlated with obesity in 2010. This near-perfect correlation (99.6%) permits predictions about obesity rates. Since VMT/LD fell in 2007 and 2008, America's obesity rate could fall to as low as 24% in 2014. These predictions come with a strong caveat: correlation does not equal causation. And the authors said they did not control for factors such as diet, income and lifestyle. Additionally, they did not explore the possibility that the larger, and thus more immobile people become, the more they drive. A second report produced by the Trust For America’s Health and the Robert Wood Johnson Foundation, based on a three-year study by the U.S. Centers for Disease Control, identifies the states with the highest rate of adult obesity rankings: Mississippi (33.8%); Alabama (31.6%); Tennessee (31.6%); West Virginia (31.3%); and Louisiana (31.2%). The states with the lowest rate of adult obesity are as follows: Colorado (19.1%); Connecticut (21.4%); District of Columbia (21.5%); Massachusetts (21.7%); Hawaii (22.6%) and Vermont (22.8%) (For the complete listing, visit Healthy Americans. What does all this mean? We want better fuel economy and that often means smaller vehicles. But, as a society too many of us are getting too large. What will change first, our vehicles or us?...

The calm before the storm, impact hurricane season can make on gasoline prices

Gregg Laskoski — Thu, 14 Jul 2011 13:58:45 GMT

U.S. consumers had seen prices at the price at the pump decline for seven consecutive weeks since Memorial Day Weekend and now gasoline prices are edging upward. While there are many factors at different times that impact the price you pay, it's extremely important at this time of year to watch Mother Nature. Storms approaching the Gulf of Mexico can change things in a hurry. Nearly half of the nation’s gasoline is produced by the heavy concentration of refineries in the Gulf of Mexico and we’ve seen sudden consequences that occur when they are either temporarily shut down, or, transportation of their finished products is disrupted. When Hurricanes Gustav and Ike rolled into the Gulf in September 2008, most refineries had already begun reducing their crude stock in anticipation of the seasonal decline in consumer demand. But with suspended refinery production compounded by hurricane closings, the U.S. faced a sudden and significant fuel shortage. Retailers reported that their wholesale prices soared by $1.50 per gallon overnight. Many said they didn’t see that much of a hike even when Katrina struck and, consequently, many stations implemented rationing. According to the U.S. Dept. of Energy, over 40 percent of the nation’s petroleum refining capacity (148 refineries) is located along the Gulf coast, as well as almost 30 percent of total U.S. natural gas processing plant capacity. Particularly during Hurricane season, adverse weather can bring immediate changes in refinery capacity, shipping, delivery to ports and pipelines. Remember, federal law requires oil rig evacuations and closures of facilities well before storms reach landfall or wind speeds become too threatening. The Atlantic Hurricane season and its tropical storm activity runs from June 1 through Nov. 30. ...

DOE report highlights

Patrick DeHaan — Wed, 13 Jul 2011 10:37:06 GMT

The Department of Energy released its weekly report on the condition of petroleum inventories in the United States today. Here are some highlights: Crude oil inventories decreased by 3.1 million barrels to a total of 355.5 million barrels. At 355.5 million barrels, inventories are 2.4 million barrels above last year (+0.7%) and remain above average. Supply at NYMEX delivery point, Cushing, Oklahoma rose 0.6 million barrels to 37.6 million barrels this week. Gasoline inventories decreased 0.8 million barrels to 211.7 million barrels. At 211.7 million barrels, inventories are now 9.3 million barrels, or 4.2% lower than last year (last week that number was 3.1% lower). Regions posting gains in inventories last week were the East Coast (+0.5mb) and the Gulf Coast (+0.5mb). Decreases were seen in the Midwest (-0.5mb), the Rockies (-0.4mb), and the West Coast (-0.8mb). Distillate inventories increased by 3.0 million barrels to a total of 145.0 million barrels. At 145.0 million barrels, inventories are now 10.8% lower than a year ago. Supply of distillate fuel (diesel, industrial fuels) is down an average of 5.2% over the last four weeks (last week the number was 5.4% lower than last year). Distillate inventories are 17.6 million barrels lower than their year ago level....

Weekly gasoline outlook

Patrick DeHaan — Tue, 12 Jul 2011 12:28:36 GMT

Gasoline prices across the U.S. and Canada have stopped dropping and have resumed their ascent in recent days, and many communities will see their gasoline prices continue to rise this week. After the IEA announcement that the agency would release 60 million barrels of crude world wide, the price of oil dropped to $89 per barrel. After some oil producing countries caught wind of the IEA and DOE's announcement it was heard that some countries would move to cut their output to offset the release of emergency inventories to keep oil prices high. The drop in prices after the initial announcement didn't last long, and today, oil prices are closer to $96/bbl. Having enjoyed several weeks seeing gasoline prices fall nicely, reality is that prices in a majority of communities across both the United States and Canada will rise again. Many areas could see prices bounce back 20-35c/gal from their lows just a couple weeks ago, while prices in Canada could rise 2-5c/L from where they were. While there are loose concerns about the economy adding jobs, it hasn't yet overpowered this most recent rally in oil prices. By next Monday, the U.S. average could rise to $3.70/gallon and prices in Canada could rise to an average or 125.4c/L. Be prepared as you make your holiday plans, be SURE to utilize the GasBuddy Trip Cost Calculator to maximize your savings!...

Distracted Driving: Teens Are the Most 'At-Risk'

Gregg Laskoski — Mon, 11 Jul 2011 10:45:20 GMT

How bad a problem has ‘distracted driving’ become? The U.S. Deptartment of Transportation now has a website dedicated exclusively to this very troubling national problem, which should tell us something. Data from the National Highway Traffic Safety Administration (NHTSA) shows that in 2009 alone, nearly 5,500 fatalities and about half a million injuries resulted from crashes involving a distracted driver. Deaths due to distracted driving presented 16 percent of traffic fatalities in 2009, a rise from 10 percent in 2005. Sadly, the “distraction” we introduce ourselves contributes to the death and destruction. Cell phones and other electronic devices are associated with up to 25% of all U.S. crashes. Consider these facts from the DOT’s website on distracted driving: • 20 percent of injury crashes in 2009 involved reports of distracted driving. (NHTSA) • Of those killed in distracted-driving-related crashed, 995 involved reports of a cell phone as a distraction (18% of fatalities in distraction-related crashes). (NHTSA) • In 2009, 5,474 people were killed in U.S. roadways and an estimated additional 448,000 were injured in motor vehicle crashes that were reported to have involved distracted driving. (FARS and GES) • The age group with the greatest proportion of distracted drivers was the under-20 age group – 16 percent of all drivers younger than 20 involved in fatal crashes were reported to have been distracted while driving. (NHTSA) • Drivers who use hand-held devices are four times as likely to get into crashes serious enough to injure themselves. (Source: Insurance Institute for Highway Safety) • Using a cell phone use while driving, whether it’s hand-held or hands-free, delays a driver's reactions as much as having a blood alcohol concentration at the legal limit of .08 percent. (Source: University of Utah) Too many of us fail to understand that talking on a phone while driving creates a potentially lethal distraction… and you can see from the last bulleted item above that delaying your reaction time when you drive increases your chances of going to either a hospital or a morgue as a result. If you’re concerned by what you read here please recognize the importance of leading by example. We cannot do a very good job of educating teen drivers on smart, safe driving habits if they see their parents making the wrong choices and driving inattentively themselves. No matter the reason, when driving never use your phone to talk or text! Take your safety and that of fellow motorists seriously and perhaps that will help teen drivers establish safe driving habits for a lifetime. ...

DOE report highlights

Patrick DeHaan — Thu, 07 Jul 2011 11:07:42 GMT

The Department of Energy released its weekly report on the condition of petroleum inventories in the United States today. Here are some highlights: Crude oil inventories decreased by 0.9 million barrels to a total of 358.6 million barrels. At 358.6 million barrels, inventories are 0.4 million barrels below last year (-0.1%) but remain above average. Supply at NYMEX delivery point, Cushing, Oklahoma fell 0.5 million barrels to 37.0 million barrels this week. Gasoline inventories decreased 0.6 million barrels to 212.5 million barrels. At 212.5 million barrels, inventories are now 6.9 million barrels, or 3.1% lower than last year (last week that number was 2.3% lower). Regions posting gains in inventories last week were the East Coast (+0.0mb), Gulf Coast (+0.5mb) and the Rockies (+0.0mb). Decreases were seen in the Midwest (-0.9mb) and the West Coast (-0.3mb). Distillate inventories decreased by 0.2 million barrels to a total of 142.1 million barrels. At 142.1 million barrels, inventories are now 11% lower than a year ago. Supply of distillate fuel (diesel, industrial fuels) is down an average of 5.4% over the last four weeks (last week the number was 4.7% lower than last year). Distillate inventories are now 17.6 million barrels lower than their year ago level....

Where the Rubber Meets the Road

Patrick DeHaan — Wed, 06 Jul 2011 13:55:13 GMT

Where the Rubber Meets the Road: Use a Quality Pressure Gauge Early & Often Under the blistering heat of summer, asphalt roads can reach a surface temperature of 150 to 180 degrees…and in Phoenix, AZ they’ve reached 200 degrees! That’s important to know because heat increases your tire pressure. In the summer you’ll see significant changes in the tire pressure of a shaded or garaged vehicle versus the same vehicle after it’s been driven for hours. That’s why it’s important to check your tire pressure regularly with a quality pressure gauge. You can’t tell just by looking! Tires that “look OK” can be underinflated by as much as 5 or 6 psi and that can impact your safety, increase wear and reduce performance and fuel economy. The tire pressure recommended in your vehicle’s owner’s manual is also found inside the driver’s door. This information provides the ideal ‘cold’ tire inflation pressure. That means you should check the pressure in the morning before you drive more than a few miles, and before rising temperatures or the sun's heat increases it. The rule of thumb says that for every 10° Fahrenheit change in air temperature, your tire's inflation pressure will change by about 1 psi (up with higher temperatures and down with lower). During summer months if you set your car’s tire pressure in the mid-afternoon after you’ve been driving it, don’t be surprised if the “cold pressure” is 2 psi lower the following morning. It doesn’t mean you have a leak, it may simply be the temporary change that can occur daily. If your cold air pressure decreases by more than a marginal amount (2 psi), have your tires checked by a professional....

Hero artist gives heads up to unsuspecting motorists

Patrick DeHaan — Fri, 01 Jul 2011 11:02:34 GMT

I tip my hat to Orlando artist Brian Feldman today, who is doing all motorists a huge favor by doing something a gouging gas station refuses to do: show their prices. Suncoast Energys and Sun Gas have long been charging customers a much higher price, and with no sign out in front of the station, motorists have wrongly assumed the station was charging a price similar to that of their local competition. Today's price? $5.799 per gallon for regular. And since the only way to see the price is after you pull up to the pump, motorists have been pulling their hair out, upset that no one is doing anything about it. Several motorists have started pumping until they realize the price is through the roof. Nine motorists give Suncoast Energys a one star review on Yelp, which is not a shock given the nature of what they're doing. Kevin W. from Arlington, Virginia says "WARNING: SUNCOAST ENERGYS IS A COMPLETE AND TOTAL RIP-OFF!!!!!" in his Yelp review. So back to the story- three cheers for Brian Feldman who is taking his own time to draw attention and to let motorists know before they even pull in what is going on. Some motorists have even cursed at him, according to the Orlando Sentinel, which is sad, but I can understand people don't realize that Brian doesn't work for the station. The stations are being fined $250 per day for avoiding an Orlando ordinance that was enacted specifically to target these two stations. Lawsuits against Orlando are pending. How about all of Florida simply writes a price gouging law that is always in effect instead of one that is only good during declared states of emergency? If you are a user on Twitter, be sure to tell @BrianFeldman how much you appreciate his act, even if you don't live near him! I sure will!...

DOE report highlights

Patrick DeHaan — Wed, 29 Jun 2011 10:38:51 GMT

The Department of Energy released its weekly report on the condition of petroleum inventories in the United States today. Here are some highlights: Crude oil inventories decreased by 4.4 million barrels to a total of 359.5 million barrels. At 359.5 million barrels, inventories are 3.6 million barrels below last year (-1.0%) but remain above average. Supply at NYMEX delivery point, Cushing, Oklahoma fell 0.5 million barrels to 37.5 million barrels this week. Gasoline inventories decreased 1.4 million barrels to 213.2 million barrels. At 213.2 million barrels, inventories are now 4.9 million barrels, or 2.3% lower than last year (last week that number was 1.5% lower). Regions posting gains in inventories last week were the Midwest (+0.7mb) and the Rockies (+0.2mb). Decreases were seen in the East Coast (-1.0mb) the Gulf Coast (-1.1mb), and the West Coast (-0.3mb). Distillate inventories increased by 0.3 million barrels to a total of 142.3 million barrels. At 142.3 million barrels, inventories are now 10.7% lower than a year ago. Supply of distillate fuel (diesel, industrial fuels) is down an average of 4.7% over the last four weeks (last week the number was 3.6% lower than last year). Distillate inventories are now 17.1 million barrels lower than their year ago level....

VW says "look ma, no hands" with self driving car

Patrick DeHaan — Fri, 24 Jun 2011 12:58:05 GMT

My first thought of the VW system called "Temporary Auto Pilot" was that I might be able to use this to help me be even more distracted on the road, which is just what we all need, right? According to Motor Authority: The future of driving, in major cities at least, is looking more and more likely to be done by high-tech computers rather than actual people, at least if the latest breakthroughs in self self-driving vehicle technology mean anything. Internet search engine giant Google has logged some 140,000 miles with its self-driving Toyota Prius fleet and Audi has had similar success with its run of autonomous cars. Now Volkswagen has presented its ‘Temporary Auto Pilot’ technology. Monitored by a driver, the technology can allow a car to drive semi-automatically at speeds of up to 80 mph on highways. Read more from Motor Authority...

Government follows through, opens SPR, oil prices plunge

Patrick DeHaan — Thu, 23 Jun 2011 12:54:34 GMT

The announcement today... is huge. This is the first time on record that I can see that the Department of Energy in cooperation with the International Energy Administration is opening strategic stockpiles for a non-disruption event. The opening of the SPR because of high prices during an economic slowdown is huge. This could potentially now be something that becomes more regular when oil prices are high during economic downturn. The opening of the SPR in the upcoming weeks is the first time since 2008 that a significant amount of oil will be drawn from the government stockpiles held in salt water caverns in Louisiana, and is tied for the largest movement of oil ever from the SPR. Oil prices have responded accordingly- traders perhaps taken by surprise, as I was, that the government is following through on something that has been talked about, evaluated, thought about, and finally agreed upon. This event is very important and significant because it marks the administrations attitude towards high prices. After spending billions of dollars of taxpayer money propping up a weak and fragile economy, the administration will finally take the wildcard out of something that could (and likely has been) dogging recovery: high oil prices. Make no mistake- the response has been immediate. Motorists will see gasoline prices continue to drop in the days and weeks ahead (barring some unforeseen major event) and the national average in the U.S. could hit $3.45 by July 4. So not only will Americans be out celebrating our nation's birthday, but spending less at the pump to do so. This is significant for Canadian motorists as well, who could see the return to 115c/L gasoline in the weeks ahead, with some areas in Canada that could be nearing 105c/L. There could be negative implications of this, but heck- let's just be happy today that someone's doing something about high oil prices....

DOE report highlights

Patrick DeHaan — Wed, 22 Jun 2011 10:44:02 GMT

The Department of Energy released its weekly report on the condition of petroleum inventories in the United States today. Here are some highlights: Crude oil inventories decreased by 1.7 million barrels to a total of 363.8 million barrels. At 363.8 million barrels, inventories are 1.3 million barrels below last year (-0.4%) and are above average. Supply at NYMEX delivery point, Cushing, Oklahoma fell 1.1 million barrels to 37.8 million barrels this week. Gasoline inventories decreased 0.5 million barrels to 214.6 million barrels. At 214.6 million barrels, inventories are now 3.0 million barrels, or 1.4% lower than last year (last week that number was 1.5% lower). Regions posting gains in inventories last week were the Midwest (+1.6mb). Decreases were seen on the East Coast (-0.3mb), the Gulf Coast (-0.7mb), the Rockies (-0.2mb), and the West Coast (-0.8mb). Distillate inventories increased by 1.2 million barrels to a total of 142.0 million barrels. At 142.0 million barrels, inventories are now 9.5% lower than a year ago. Supply of distillate fuel (diesel, industrial fuels) is down an average of 5.7% over the last four weeks (last week the number was 3.6% lower than last year). Distillate inventories are now 14.9 million barrels lower than their year ago level....

FTC launches probe into gas prices, NPRA blasts investigation

Patrick DeHaan — Tue, 21 Jun 2011 11:45:39 GMT

As many of you may be aware, the FTC has opened an official investigation into whether there's any manipulation or anti-competitive practices going on in the industry. Recently, refiners have been coming under fire, and rightfully so, as lawmakers finally realize that perhaps the wildcard between crude oil and gasoline may be deliberately boosting profit. It does not come as a shock that the National Petrochemical & Refiners Association blasted the FTC for such an investigation, insisting that its members are not to blame. Let's be realistic here people, refineries are the sole middleman that lies between raw crude oil and finished gasoline, diesel, etc. If prices go up there's a good chance it is because of something happening at the refinery level. To the NPRA who insists that their members, refineries, aren't to blame? Where was the NPRA in May when refineries throughout Illinois and Indiana were plagued with suspect outages? Was it not the fault of refinery problems that prices soared in the region? Why were prices in Michigan, Indiana, Illinois, and other states in that area the highest in the nation? It was simple: refinery outages and problems (or whatever the truth is) caused prices to rise. And that, NPRA- was the direct impact of your members. While rising crude prices certainly plays in to gasoline prices, why do you think retail gas prices climb so significantly almost every spring? Much of it, in my opinion, is what I call the "refinery wildcard". If there aren't refineries in operation, oil inventories increase and oil prices fall while gasoline inventories plummet and gas prices soar. Refineries have a major impact on pump prices whether they admit it or not. As I've long insisted, since refineries have a conflict of interest in seeing higher prices, the government should at least have a pair of eyes and ears on the refining sector. Would it hurt? No. But it certainly could help ease the pain we see every spring and perhaps then could the government keep corrupt people honest....

DOE report highlights

Patrick DeHaan — Wed, 15 Jun 2011 10:37:16 GMT

The Department of Energy released its weekly report on the condition of petroleum inventories in the United States today. Here are some highlights: Crude oil inventories decreased by 3.4 million barrels to a total of 365.6 million barrels. At 365.6 million barrels, inventories are 2.5 million barrels above last year (0.7%) and are above average. Supply at NYMEX delivery point, Cushing, Oklahoma fell 1.1 million barrels to 37.8 million barrels this week. Gasoline inventories increased 0.6 million barrels to 215.1 million barrels. At 215.1 million barrels, inventories are now 3.3 million barrels, or 1.5% lower than last year (last week that number was 3.1% lower). Regions posting gains in inventories last week were the East Coast (+1.9mb), the West Coast (+0.2mb), and the Rockies (+0.0mb). Decreases were seen in the Midwest (-0.4mb) and the Gulf Coast (-1.1mb). Distillate inventories decreased by 0.1 million barrels to a total of 140.8 million barrels. At 140.8 million barrels, inventories are now 10.1% lower than a year ago. Supply of distillate fuel (diesel, industrial fuels) is down an average of 3.6% over the last four weeks (last week the number was 5.0% lower than last year). Distillate inventories are now 15.8 million barrels lower than their year ago level....

Saudis go around OPEC, motorists win, but be ready for Atlantic storms

Patrick DeHaan — Mon, 13 Jun 2011 14:30:55 GMT

Oil prices have started off the week be gently falling. Late last week we received word that OPEC producer Saudi Arabia was going to increase their production, going outside of OPEC's "official" decision. Such a move is likely to spark anger at the Saudi's, but high price hawks Iran and Venezuela likely have little in their power to stop such an increase. The Saudi's move highlights the instability of oil producing countries and further undermines the quotas set by OPEC. While oil prices initially rallied last week on OPEC's inability to increase production, prices are now coming back down after the Saudi's flexed their muscles and said they will increase production. While there are certainly politics involved in the Saudi's decision, it still is a win for U.S. motorists. By next Monday, the U.S. average may drop to $3.65/gallon while the Canadian average may fall to 123.5c/L. Motorists should be very aware that in the meanwhile, hurricane season is underway, and should storms begin forming at an early and more rapid pace than past years, the market may completely ignore Saudi's output boost, choosing instead to be concerned about Gulf Coast refining capacity. It was just a few years ago that Katrina and Ike caused a large amount of production to go offline for months and years, and with the stakes higher this time because of economic improvement, a hurricane could devastate not only property owners, but motorists as well....