Wholesale gasoline hits $3 on Gulf Coast

[htuttle]

NEW YORK (Reuters) - Wholesale gasoline prices on the Gulf Coast broke $3 a gallon on Tuesday -- far higher than prices at most U.S. pumps -- as major refineries remained shut after Hurricane Katrina, trading sources said.

(snip)

"This in many ways is the worst-case scenario that the oil industry has been fearing," said Geoff Sundstrom, spokesman for the AAA motorist group. "Production, distribution, and refining has slowed to a crawl through the whole area and that will mean higher gasoline prices throughout the entire United States."

(snip)

On Tuesday, a gallon of gasoline traded in the Houston-based Gulf Coast physical marketing hub cost about $3.15 a gallon -- sharply higher than the national average retail price of about $2.60 a gallon.

Traders were reluctant to guess how high the wholesale spike will make prices at the pump but some say it's safe to bet that the price of a gallon of regular self-service gasoline in the United States will top $3 per gallon by next week.

(more at link)
http://news.yahoo.com/s/nm/energy_gasoline_prices_dc

[CatholicEdHead]

1. OUCH

That will probably mean around $3.50 here in Minnesota and probably well over $4.00/gal around Chicago.

[Im_Your_Huckleberry]

2. i don't think they've been fearing this scenario...

i think they've been praying for it. call me a cynic.

[tsuki]

4. Sorry, Im, you beat me to it. :-)

[alarimer]

8. It's their dream come true

fuckers. I liked Randi Rhodes idea to cap profits in a time of emergency (like the war we are supposedly in). After all, we are ALL supposed to do out part.

[tsuki]

3. "This in many ways is the worst-case scenario

that the oil industry has been fearing,"

Shouldn't that be "praying for?"

I don't understand the American Capitalism System. The Conservative side of the Corporations want Free Trade and an Open Market Place, while the Liberal side wants Tax Breaks, Credits and Welfare Grants. So what kind of a system is it anyway?

[Faygo Kid]

5. It's $3 a gallon today in Michigan, too.

Finally hit it, everywhere, including so-called "discount" stations. That's up 35 cents from last night. It's just starting. Labor Day coming may keep it from going to $4 - maybe. But it's going up over $3 big time.

[GretchenRed]

6. Why doesn't Bush DO something?!

The gas prices here are supposed to rocket up to $3.00, and no one can afford that. It's insane....such wretched excess.

[sarcasmo]

7. Because he is still on vacation.

[GretchenRed]

11. Well

he need to end his vacation! Good grief.

[NYC]

13. He will end his vacation tomorrow.

PBS reported that he will go to Washington tomorrow.

[brentspeak]

19. He has done something

He's done his part to allow oil prices to rise so that his oil cronies can have their homes swamped with dollar bills.

[HockeyMom]

9. I filled up yesterday

at a No Name Gas Station and it was $2.69. Today at the same place it is $2.79. Ten cents in ONE DAY. The name brand stations are now $2.89. This is in Long Island.

[Obamanaut]

16. Spouse filled up Sunday at $2.65, I got gas in my motorcycle

today at the same station at $2.92 (in north Fla.) I think we're going to be using the motorcycle a lot more soon.

[MasonJar]

10. Chavez is going to help the poor, hospitals, etc. Buy Citgo. You

will be helping other Americans and other poor.

[rabbit2484]

12. $2.89 here in Madison

I filled up at $2.65 at noon today.

[Eloriel]

14. WHOLESALE PRICES????

Can anyone explain that to me? (As in, what is the retail price on something like that?)

[durablend]

15. It's the base price of the "final" product

You still have to tack on things like transportation costs, taxes, station costs/profit, etc. to get the price at retail. Here in the central part Pennsylvania that would add around .55 - .75 to a gallon.

[tom_paine]

17. "worst-case scenario" my ass! This tragedy is an Oil Man's wet dream

They have already been gouging us probably 20% or more on current prices, this will allow them to gouge us for 30-40%.

I say that because I think the only time since the Phony Energy Crisis of 2001 that they WEREN'T gouging us is post-911.

Remember that? When oil prices reacted OPPOSITE to the dictate of market forces?

My guess is that the oil companies for the good not of the country but for their BushFriends, gave up their gouge for a short time. Prices went from $1.50 to roughly $1.10.

Remember? If we are paying $3.00/gallon, you can bet your ass the REAL price is more like $2.15/gallon.

Oh my yes, and BushOil Man's Wet Dream!

[Rex]

18. Oil companies could go back to 2000 prices if they wanted to.

They won't because greed rules this country.

[bluestateguy]

20. That cannot be allowed

It's time for price controls.

Tell the "free market" Chamber of Commerce/Club for Growth types to sit down and shutup.

There is no place for capitalist greed in times of crisis.

[mike_c]

21. "no place for capitalist greed in times of crisis."

:rofl: The greediest capitalists LIVE for times of crisis. Starving people will trade their mothers for a potato.

[Tippy]

22. $3.00 a gallon in Martin TN...

$2.59 here in Cookeville, TN up 20 cents from yesterday....