Excerpt:
Do not worry, we are told on a daily basis, the
rise in crude oil prices is transitory and won't affect gas prices and
implicitly the US consumer's pocket book (already ravaged by spiking
mortgage rates).
Well, sorry to burst that little fantasy but gas prices in the last few days have surged (up 9c in 4 days).
In fact today's jump is the largest in six months and pushes regular close to its all-time high for this time of year.
Arguing
not to worry as gas prices are more sensitive to Brent is a non-starter
as it is very evident, despite the export of WTI, that gas prices are
tracking the higher prices of crude oil and if history is any guide -
with regard the lead-lag from crude to wholesale gasoline to retail, gas prices will be at new all-time highs for this time of year within the next month.
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