gas

How to get better Gas Mileage

gasmileageSummer is generally regarded as the big driving season, as families hit the road for small or large vacation trips between Memorial Day and Labor Day.  In order to help conserve fuel and money, GasBuddy offers a free smartphone app, which has been downloaded more than 25 million times to help motorists find the lowest gasoline prices in their area. In addition to the app, you can save money by improving your gas mileage with a few easy tips and techniques. For example, by utilizing cruise control one is able to maintain a constant speed over long distance, which often saves gas. To learn more ways to improve your gas mileage click here or visit www.kimberleyvassal.com.

 

 

Gas Prices Still Rising

The national average price for a gallon of gasoline rose for the 10th straight day on Monday to $3.842. That is now only about 6.6% below the record high of $4.114 from July 2008. The average price rose by four-tenths of a penny, according to the survey of gas stations conducted for the motorist group AAA.

Gas prices are now up more than 17% this year. The nationwide average was $3.54 a gallon a month ago and $3.76 a gallon on March 9 — the day that prices started rising again after a few days of slight declines. Gasoline averages more than $4 a gallon in seven states: Alaska, California, Connecticut, Hawaii, Illinois, New York and Washington. Gas prices are also above $4 a gallon in the District of Columbia, according to AAA. At more than $4.48 a gallon, Hawaii ranks as the nation’s high. Prices are less than a dime away from $4 a gallon in Michigan, Nevada, Oregon and Wisconsin.Wyoming has the nation’s lowest gas prices, averaging slightly above $3.43 a gallon.

Gas prices have been rising on the back of soaring oil prices, which have shot up more than 5% over the past month amid fears that tensions with Iran will lead to an all-out war that causes a disruption in oil supplies. Signs of an improving economy have also boosted oil prices, as has the stock market, which hit multi-year highs this week. Hopefully their will be some sign of relief in the future but who knows what will happen!

Eight Reasons Gas Will Hit $5 This Year

Check out this article posted by Yahoo.com regarding the price of has and why they think it is going to rise in the near future… The price of gas is a widely covered news item these days. Oil prices have moved up from $75 a barrel in October of last year to more than $100 a barrel currently. And the trend continues to point toward even higher oil prices. Of course, along with the price of oil, gas prices have also risen, almost in lockstep.

24/7 Wall St. reviewed the major reasons that gas prices have risen in the past quarter and analyzed whether the causes will improve or worsen. We have estimated how much each factor could increase gas prices. Together, those increases would be enough to push gas prices up by another $1.50.

1. Strait of Hormuz

About 20% of the crude oil produced in the world is shipped through the Strait of Hormuz, and Iran has threatened to shut down shipping traffic through the Strait. At its narrowest, the passage is 30 miles wide, so there is a realistic case that a conflict could close it. Iran has already been isolated as a trade partner by U.S. and EU sanctions. The regime in the country has made a number of threats about what it might do if its “national interests” were threatened. If Iran follows through with its threats, the period the passage is closed could be very brief if the U.S. Navy, which has a carrier group in the region, moved to reopen the lane. But it is not clear that the American government would make that decision without the open support of allies or the United Nations. A closure of the passage, or any escalation that would make a closure more likely, will drive oil prices higher — and by extension, gasoline prices.

2Iran

Iran contributes to a second problem in terms of global oil supply well beyond that of its ability to interrupt supply. Because of the embargo against the nation due to nuclear weapons violations, the U.S. has pressured large oil importers such as Japan to act to isolate Iran by cutting their imports. This puts Japan in a position in which it has to tap even tighter global supply. Japan apparently has agreed to cut its Iranian crude imports by 20%. But as the world’s third largest oil importer, Japan indeed will have to get its oil somewhere other than Iran — which will put more pressure on current production.

3. Refiners Likely to Raise Prices

Most of the oil refined on the east coast of the U.S. is Brent crude, a type of oil produced from the North Sea. The price of Brent — more than $124 a barrel — is almost $16 higher than the price of West Texas Intermediate (WTI) crude, the amount most people read about in the media. But because Brent has replaced WTI as the global price benchmark, U.S. refiners set prices for gasoline and other products as if Brent were the only grade of crude used. That allows refiners with access to cheaper WTI to make larger profits.

However, when the prices converge, as happened in the final two months of 2011, WTI refiners lose their edge — and their hefty profits. “Refiners were losing money in November and December. You can only lose money for so long,” John Felmy, chief economist for the American Petroleum Institute, recently said. Many large refineries are owned by public companies that do not have much appetite for posting ongoing losses. To avoid losses, refiners will have to increase gasoline prices.

4. Other Geopolitical Risks

Iran does not present the only geopolitical challenge to oil production. In Nigeria, which is the 14th largest producer of oil in the world, Islamic terrorist group Boko Haram has continued to attack Christian areas of the country. The Nigerian Army has reacted by attacking Islamists. Militants have continued to attack pipelines, apparently in a move to disrupt the government.

Meanwhile, there are concerns about supply even from Venezuela. Venezuela is the world’s 11th largest producer of crude. The regime there has been fairly stable under the 13-year reign of Hugo Chavez. But Chavez is due for a second cancer surgery later this month. The Miami Herald recently wrote that “some analysts question his [Chavez] ability to hold onto the presidency through the current election cycle.”

Other parts of the Middle East and Africa are also in turmoil. Analysts recently mentioned Bahrain, Libya, Iraq, Nigeria and Yemen as political flashpoints. “The world faces oil supply risks from a multitude of sources, not only in the Middle East but also in Africa. In our view, not since the late 1970s/early 1980s has there been such a serious threat to oil supply,” Soozhana Choi, Deutsche Bank’s head of Asia commodities research, said in a note to clients recently. All these flashpoints translate to further concerns about oil supply. And when oil supplies are tight, the price of oil — and gasoline — increases.

5. European Union Recession

For now, Greece has been bailed out again – a move that should buoy confidence in the region and encourage demand for oil. Even with the Greek bailout, however, the eurozone is not out of the woods as nations continue to implement austerity measures to protect against the risk of default on sovereign debt.

6. U.S. Economic Recovery

An improved U.S. economy means higher oil prices. U.S. GDP, employment and even housing have all staged unexpected improvements in recent months. Many economists now peg a 2012 GDP increase at more than 2%. The new White House budget assumes growth of 3% by 2013. An average of more than 100,000 jobs has been created in each of the past six months. And an extension of payroll tax cuts through the end of this year may further aid the employment recovery. An extension of unemployment benefits means that hundreds of thousands of American who would have no income, will have at least enough to consume basic goods and services. The argument that Americans now drive less is not a powerful one for gas and oil demand when a healthy economy also means more consumption of oil for business, petrochemicals and jet fuel. Demand for oil-based products across the entire economy will pick up with any recovery.

7. It Is Almost Summer

In the U.S., summer vacation driving has historically boosted demand for gasoline. Over the past three or so years, however, that boost has been small, if present at all. In 2011, U.S. traffic volume decreased year-over-year in every month except January and February. But that was last year. So long as the U.S. economy continues to improve, more drivers will be on the road this summer.

8. Supply Risk

In December 2011, OPEC members produced nearly 31 million barrels a day, cutting the cartel’s spare capacity capability from 3.18 million barrels per day to 2.85 million. Saudi Arabia accounts for 2.15 million of those daily barrels of spare capacity.

Whether this data is accurate is arguable. What is not arguable is that starting to pump the spare capacity will take time, which will not be very helpful in the event that the Strait of Hormuz is closed or some other geopolitical risk is realized.

Then there is Russia, the world’s first or second largest producer, depending on which day you look at the data. The OECD is counting on Russian production to make up for some of the short supplies and to grow by 1.4% to 10.72 million barrels a day in 2012. Russia grew its production by 1.2% in 2011. An additional gain of 17% in 2012 could signify that the OECD is hoping that Russian production can grow even more. There is no guarantee that Russia will deliver.

Supply from Canada, the U.S., Australia and Brazil is expected to rise in 2012, though North Sea production is expected to fall. The OECD estimates global demand in 2012 of 90 million barrels a day and global supply essentially equal to projected supply. Nothing about that state of affairs should lead anyone to a conclusion that prices will fall.

Gas Prices Drop For Now

Gas prices have fallen over the past two weeks, continuing their slide despite an increase in crude oil prices, according to a survey published Sunday. The average price of regular gasoline is $3.29 a gallon, the Lundberg Survey found. That’s down 9 cents from two weeks earlier, and down a total of 18 cents over the past six weeks, said publisher Trilby Lundberg.

While crude oil prices rose $3.55 a barrel over the past two weeks, gas prices fell due to “shrinkage in the profit margins of the downstream portion of the oil industry — that is, refiners and retailers,” Lundberg said. “They were unable to pass through the higher oil prices because American motorists’ demand for gasoline continues to shrink due to hard economic conditions.” However, it’s unlikely prices will continue to fall, Lundberg said., because refiners and retailers “will not be able to sustain losses on and on.” “It will all depend on what crude oil does,” she added. The latest average gas price is 38 cents higher than it was a year ago. For more information check out the full article at CNN.com 

Gas prices rise as Labor Day nears

Pay-at-the-pump gasoline pump in Indiana, Unit...

Image via Wikipedia

U.S. retail gasoline prices rose almost a nickel to $3.63 a gallon last week, after three weeks of decreases, the U.S. Energy Department said Monday. The national price for regular unleaded gasoline remained 94.5 cents higher than it was a year ago, the department said. Oil prices, which account for about 65 percent of the cost of making gasoline, rose slightly last week and traded up $1.90 on the New York Mercantile Exchangeto settle at $87.27 a barrel on Monday.

Relief that damage from hurricane Irene was less severe than expected drove oil prices up on Monday. While oil prices have begun to recover from their steep slide at the beginning of August, they remain well below levels around $100 a barrel hit last month. Who knows what the future might hold as far as gas prices but lets hope to see some sort of decline in prices soon! (Very Unlikely). For a free insurance quote visit our website today http://www.kimberleyvassal.com

Better fill up soon, Gas Prices on the rise again!

Gas prices in the United States are on the rise, with a 6 cent increase per gallon in 1 day!  Why do we see this sudden increase?  Some say it is due to the Libyan leader Moammar Gadhafi’s threat to destroy his country’s oil fields.  This threat is driving the price of crude oil to $100 per barrel, which hasn’t reached that level since 2008.  Since it has reached $100 per barrel for crude oil, we have seen a big jump in the United States gas prices on land and in the air.  Airlines are also incurring the higher fuel cost by adding an extra fuel surcharge to most flights.  These surcharges add about $20 to a round trip within the US and much more for an international flight. Visit Kimberley Vassal Insurance to learn what we can do for you!