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Washington state gas stations run out of fuel, prep for $10 a gallon

May 20, 2022

Washington state gas stations run out of fuel, prep for $10 a gallon

Gas stations in Washington state are resetting their price boards to accommodate double digits in preparation for fuel prices potentially reaching $10 a gallon, according to a report.

The move comes as several gas stations in the Evergreen State ran out of fuel, the Post Millennial reported.

At the 76 gas station in Auburn, about 30 miles south of Seattle, gas pumps were reprogrammed so the display could indicate a price of at least $10 a gallon.

The displays were limited to single digits as recently as March, but the surging price of gas has led to the change.

A 76 spokesperson told the Post Millennial that the change did not necessarily mean the company was predicting gas prices would reach $10 a gallon.

The station in Auburn also sells race fuel, which is more expensive than the fuel that is used by ordinary citizens.

Race fuel costs more due to the high-octane, premium fuel that is required to enable the engine to have a higher compression ratio, giving it a more energetic explosion and improving the performance of turbocharger and supercharger engines.

Gas stations in Washington State have readjusted their pumps to display double digit gas prices, according to a report.
Gas stations in Washington state have adjusted their pumps to display double-digit gas prices, according to a report.
Bloomberg via Getty Images
Motorists in the Evergreen State are also reporting that some gas stations have run out of fuel.
Motorists in the Evergreen State are also reporting that some gas stations have run out of fuel.
AP

Washingtonians are also having to contend with gas stations that are running out of fuel.

Motorists who drive up to gas pumps in Kennewick, Pasco and West Richland are met with notes indicating that the station does not have any fuel to sell — except diesel.

On Facebook, local residents are reporting more than 10 gas stations that are out of fuel.

…click on the above link to read the rest of the article…

Demand Destruction Has Begun

March 26, 2022

Demand Destruction Has Begun

One month ago, Brent jumped above $100/bbl for the first time in eight years as Russia executed a full-scale invasion of Ukraine, and it became clear that western governments would impose sanctions. The oil market has been in triple digits for practically the entire time since.

And, after a month of oil prices we have not seen in nearly a decade and weeks of record-high fuel prices, JPMorgan has published a research report (available to pro subs) which finds that high-frequency data suggest that consumers are beginning to react resulting in what the Fed has desperately wanted to achieve all along: commodity demand destruction.

That said, high prices are clearly not the only demand-destructive force in the world at the moment, however. The crisis in Ukraine, crippling financial sanctions in Russia, and the continued spread of the highly infectious Omicron variant in China have an even more direct impact on regional fuel consumption than high prices.

As a result, JPMorgan has cut 1.1 mpd off its 2Q22 demand forecasts, followed by about 0.5 mbd cuts to both 3Q and 4Q. On net, this trims 420 kbd on average from the bank’s expectations for 2022 global oil demand as high prices, COVID restrictions, and geopolitical conflict drive demand destruction in Russia, China, India, and Europe.

While the US has been relatively isolated so far (despite the highest gasoline prices on record), JPM’s demand revisions are heavily concentrated in Europe, which remains the epicenter of the geopolitical shock. Since the start of the Russia-Ukraine war, the bank’s economists have downgraded the growth in the region by over 2%-pts and have raised inflation forecasts by nearly 3%-pts.

…click on the above link to read the rest of the article…

 

European Gas Stations Out of Diesel: French Refinery Strike Deepens Crisis 

November 28, 2018

European Gas Stations Out of Diesel: French Refinery Strike Deepens Crisis 

Diesel is in short supply in Europe. The situation is about to worsen as the biggest French refinery is shutting down.

Bloomberg reports Europe’s Diesel Woes Deepen as Strike Halts French Oil Refinery.

Total SA, France’s biggest refiner, is in the process of shutting its largest plant in the country, the 247,000-barrel-a-day Gonfreville facility in Normandy, due to a labor dispute, a spokeswoman for the company said on Tuesday. A few hundred miles away, in the Netherlands, retail fuel stations are running out of supplies because of shipping constraints on the Rhine, according to Royal Dutch Shell Plc.

Shell said Nov. 20 that it cut production at its Rheinland refining site, the biggest complex of its kind in Germany, due to low water levels on the Rhine. In a tweet on Tuesday, the company said that it was temporarily unable to supply some unmanned fuel stations in the Netherlands.

Gas stations in Germany had already been running dry due to the situation on the Rhine, a major petroleum product transportation corridor that runs northwest from the Swiss Alps all the way to the Netherlands. Switzerland released emergency fuel stockpiles because of the situation on the river.

The premium per barrel of diesel over Brent crude – another indicator of market strength – was at $15.96 on Tuesday, the highest for the time of year in six years.

Diesel Price Poised to Soar

This shutdown cannot possibly come at a worse time for French President Emmanuel Macron.

Macron is already reeling over a protest of his diesel tax.

Diesel Tax Turns Violent

​People from across France went to Paris to let the president know how they feel about the taxes in general and the tax on diesel. The [Diesel Tax Protests](Diesel Protests in France Turn Violent) then turned violent.

…click on the above link to read the rest of the article…

Farmers Reeling From High Oil Prices

May 22, 2018

Farmers Reeling From High Oil Prices

Tractor

As the summer driving season approaches, drivers are already paying more for gasoline due to the oil price rally in recent months.

But higher oil prices affect not only the gasoline bills of retail consumers. The higher price of oil is also pushing up diesel fuel prices as the harvesting and planting seasons for various crops are already in full swing.

Farmers in the United States and around the world see their diesel fuel expenses jumping and eating into their profits that have been already constrained by depressed prices of some crops.

Ultra-low sulfur diesel is used for farming equipment and for transportation of crops, and the May price of that diesel is the highest it’s been since 2014, just before the collapse of crude oil prices.

“You just kind of all of a sudden realize, ‘Wow, it’s pretty high,’” farmer Glenn Brunkow from Wamego, Kansas, tells Reuters.

For next year, Brunkow is considering locking in diesel prices for the first time ever to save on future rises in diesel fuel prices.

This year, farmers are struggling with higher fuel costs as a result of the advance in crude oil prices in recent months.

In the U.S., where America’s farms output contributed US$136.7 billion—or about 1 percent of GDP—to the economy in 2016, total production expenses this year are expected to be flat on 2017, but spending on fuel and oils is expected to jump 10.2 percent, forecasts by the United States Department of Agriculture (USDA) show.

Spending on fuels and oils, which accounts for nearly 5 percent of cash expenses, is expected to increase by 10.2 percent, or by US$1.4 billion, on top of a 13.9-percent, or US$1.7 billion, increase for 2017.

…click on the above link to read the rest of the article…

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