Why Are Gas Prices Going Up

Why Are Gas Prices Going Up Again?

The prices of gasoline have always been known to fluctuate up and down and sometimes they reach extreme highs.

When are gas prices going up again?  Great question but,it certainly is a pain in your wallet to fill up at the gas pump. Most people do not know or understand the why is the price of gas going up?  They often go up quickly within the time frame of a few weeks. About 70% of the actual price of gas is dictated by the cost of crude oil at that time and the remaining 30% of the price is a direct result of the other processes the gas goes through, from the refineries to distribution.

The gas market is regulated by supply and demand like many other markets and the price at the pump reflect this. Oil companies bid higher for crude oil when they feel it would be more valuable and these higher purchase prices, leads to higher resale prices and the consumer at the gas station ends up coughing up the extra dollars the oil companies bid.

During this time of the year (spring) there usually is a rise in gas prices because of the surge in demand for gas during the summer months. This means that the oil companies are going to bid higher prices for gas and over the span of a few weeks we begin to see a surge in prices at the pump.  This is a big reason why is gas going up.

Although this is the more steady reason why gas prices increase, there has been other reasons for the sudden increases in gas prices in recent years.

·         Oil Pipeline damage or shut down

A lot of times when disaster hits and such events reduce the supply chain and makes gas prices go up as a result of the decreased supply. Pipelines are often shut down for regular seasonal maintenance and if not adequately accounted for this could also be why is gas going up again in the following weeks.

·         Military events

In the event of military actions or drills being taken by the armed forced. There is a lot of uncertainty or tension that can cause the price of oil to go up. This depends greatly on the scale of the action is usually significant only in extreme cases.

There are numerous different reasons why is gas going up the way they do and it all boils down to a game of supply and demand. The usual trend sees it increase around the peak driving spring and summer months and decrease slightly the following winter, but sometimes geopolitical action or natural disasters could also be factors.  While we can have a good idea when are gas prices going up again, we just don't know how much.

So the biggest question shouldn't really be why is gas going up, but what are you going to do about it?  Learn how you can save $0.40 to $0.90 per gallon of gas with Fuel Direct.

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High Gas Prices Bring Opportunity

Many experts are predicting record highs for gas prices this year. Some people are calling for $5 per gallon, some $6 and Donald Trump is calling for some areas of the country to hit $7 per gallon.

Ouch!

We can't change that, but we can change our fuel economy. Many people have been experiencing savings of $0.40 to $0.90 cents per gallon. This is based on gas prices in the $3.50 to $4 per gallon range. When gas prices go up the savings go up.

This scenario presents both a major problem for the public and a major opportunity. Gas prices above $4 can be an economy killer. Whether you drive a little or a lot, just the transportation costs on all products in highly inflationary.

But...If you are a Fuel Direct Distributor, the high gas prices bring a new awareness on fuel to the public. Many people would drive clear across town to save a nickel. How many people do you know that would be interested in saving 40 to 90 cents per gallon or more?

As a Fuel Direct Distributor today you have a very receptive audience..and growing!

The possibilities of Fuel Direct are endless. Watch the following video on how a trucking company is saving substantially at the pump as well as their maintenance costs.

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Spring Gas Prices Are Set To Reach Record Highs-Could Reach $4.25 By April

According to a recent article from the associated press, spring gas prices are set to reach record highs.

At $3.53 a gallon, prices are already up 25 cents since Jan. 1. And experts say they could reach a record $4.25 a gallon by late April.

"You're going to see a lot more staycations this year," says Michael Lynch, president of Strategic Energy & Economic Research. "When the price gets anywhere near $4, you really see people react."

The surge in gas prices follows an increase in the price of oil.

Oil around the world is priced differently. Brent crude from the North Sea is a proxy for the foreign oil that's imported by U.S. refineries and turned into gasoline and other fuels. Its price has risen 11 percent so far this year, to around $119 a barrel, because of tensions with Iran, a cold snap in Europe and rising demand from developing nations. West Texas Intermediate, used to price oil produced in the U.S., is up 4 percent to around $103 a barrel. That's 19 percent higher than a year earlier.

Higher gas prices could hurt consumer spending and curtail the recent improvement in the U.S. economy.

A 25-cent jump in gasoline prices, if sustained over a year, would cost the economy about $35 billion. That's only 0.2 percent of the total U.S. economy, but economists say it's a meaningful amount, especially at a time when growth is only so-so. The economy grew 2.8 percent in the fourth quarter, a rate considered modest following a recession.

Gas prices are already an issue in the presidential campaign. Republican candidate Newt Gingrich spoke several times this week about opening up more federal land to oil and gas drilling as a path toward U.S. energy independence — and lower pump prices.

"Our goals should be to get gasoline to $2.50 or less so that working families can actually get to work and retired families can travel," Gingrich said at a campaign event in Los Angeles Thursday.

High oil and gas prices now set the stage for even sharper increases at the pump because gas typically rises in March and April.

Every spring, refiners suspend operations to switch the type of gasoline they make. Supplies of wintertime gas are sold off before March, when refineries need to start making a new formula of gasoline that's required in the summer.

That can mean less supply for service stations, resulting in higher gas prices. And summertime gasoline is more expensive to make. The government mandates that it contain less butane and other cheap organic compounds because they contribute to the formation of ground-level ozone, a primary constituent in smog. That means more oil, a costlier component, is needed to produce each gallon.

The Oil Price Information Service predicts that gasoline could peak at $4.25 a gallon by the end of April. That would top the record of $4.11 in July 2008.

The national average for gasoline began the year at $3.28 a gallon. The average price for February so far is $3.49 a gallon. That's up from $3.17 a gallon last February, a record at the time. Back in 2007, before the recession hit, the average for February was $2.25 a gallon.

Prices are higher on the East and West Coasts, where gasoline has risen above $3.70 in Connecticut, New York, Washington D.C. and California. This isn't unusual — states on the coasts charge some of the nation's highest gas taxes.

High gas prices put a strain on many people's budgets.

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Gasoline Prices To Soar Well Above $4 Per Gallon

Gasoline prices will soar "well above" $4 a gallon and possibly higher this summer due to "perverted logic" as rising crude prices force refiners to close their doors, further crimping supply and pushing prices higher, says commodities research analyst and trader Stephen Schork.

Gasoline prices are currently hovering around $3.50 a gallon, higher than they normally are this time of year, according to the AAA Fuel Gauge Report.

In 2008, when gasoline broke records, average prices didn't hit $3.50 a gallon until April 21, which is more than two months away, the Los Angeles Times reports, citing the AAA Fuel Gauge Report data.

Iranian threats to close down the Strait of Hormuz and crimp the world of crude supply is sending global oil prices climbing.


Pricier crude is forcing U.S. refiners to pass on costs to consumers, who balk when prices at the pump approach $3.50.

When consumers buy less, refiners close down due to lack of demand, although those closures erode even more supply from the market, thus sending gasoline prices back up again as part of a vicious cycle.

"You have this kind of perverted logic now," Schork told Moneynews in an exclusive interview. "The refiners cannot make money, because there is no demand for what they are making or the demand is very weak with high gasoline prices. So they are either limiting their capacity or they are shutting in their refineries altogether."

More than "300,000 barrels a day of gasoline production on the East Coast of the United States is currently shut in, it's closed," said Schork, editor of the energy newsletter The Schork Report.

"We are on this hamster wheel where high crude prices from geopolitical fears are driving refiners out of business. Refiners are out of business because demand for gasoline is weak and the fact that refiners are pulling back is driving gasoline prices even higher."

Furthermore, as the spring approaches, seasonal factors push up fuel prices, as more expensive inputs are used in refineries to produce warm-weather blends.

Increased driving in the U.S. also pumps up prices in spring and summer.

"That prices are at all-time highs for this point of the season given where crude oil prices are trading right now, gasoline prices this summer on the East Coast are going to be well above $4 a gallon," Schork says.

In the Rocky Mountains and Great Plains states, ample oil supply is available to keep prices lower, although pipeline capacity is lacking to bring that supply to thirsty East Coast markets.

Operators along one pipeline, run by Canadian firm Enbridge, are working to reverse the flow of the line to carry more oil from the upper reaches of North America further south by June, which may provide some relief, Schork says.

"Now the situation is are we going to be paying records? It's kind of hard to say we're not going to be paying records at this point," Schork says.

Repeat performance

Still, however, the world has seen global oil supply shrink in the past.

Last year, the Arab Spring uprising spread to Libya, and supply fell sharply during the chaos.

And while Iran may beat its chest and threaten the world in the face of sanctions, in the end, the country has to sell its oil in order to keep petrodollars flowing into its economy.

Iran also cannot close the Strait as it has to import gasoline and other derivatives — while Iran is rich in crude, it refines very little.

Adding to that, Europe has said it will embargo Iranian oil and should others follow suit, the only buyers remaining would likely be China and India, which would enjoy the position to dictate prices to Tehran since nobody else would be buying.

Furthermore, any attempt to close the Strait of Hormuz would cut off the shipping lanes used by oil-rich Arab countries, which could launch military campaigns themselves should Iran make good on its threats.

Translation: Iran will back down.

"The likelihood that Iranian barrels go missing is limited," Schork says.

The access to Libyan oil returning to the market, possibly more Canadian oil flowing south and the likelihood that Iran will stand down offers some relief.

Yet consumers shouldn't breathe easy, as if and when Iran determines that isolation and economic disaster is not worth pursuing a nuclear bomb, geopolitical tensions have already pushed up oil enough.

"East Coast refiners are paying upwards of $120 a barrel to get oil into their refineries, and $120 a barrel in the East Coast translates well over $4 or $4.10 or $4.20 for a gallon of regular gasoline this summer," he told Moneynews. "Some market areas will be closer to $5 than $4.

For more information on how you can beat the rising gas prices by saving $0.40 to $0.90 per gallon and earn cash go to Fuel Direct Savings.

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Europe Agrees to Ban Oil Imports From Iran

From Reuters

What will this do to the price of oil? By Summer the price of a gallon of gas could get ugly.

European governments have agreed in principle to ban imports of Iranian oil, EU diplomats said on Wednesday, dealing a blow to Tehran that crowns new Western sanctions months before an Iranian election.

The prospective embargo by the European Union, along with tough U.S. financial measures signed into law by President Barack Obama on New Year's Eve, form a concerted Western campaign to hold back Iran's nuclear program.

Iran says the program is strictly non-military, but Western countries say a November U.N. report shows it has sought to build an atomic bomb. Talks between Tehran and major powers broke down a year ago.

Diplomats said EU envoys held talks on Iran in the last days of December, and that any objections to an oil embargo had been dropped - notably from crisis-hit Greece which gets a third of its oil from Iran, relying on Tehran's lenient financing. Spain and Italy are also big buyers.

"A lot of progress has been made," one EU diplomat said, speaking on condition of anonymity. "The principle of an oil embargo is agreed. It is not being debated anymore."

U.S. State Department spokeswoman Victoria Nuland called the EU moves "the kinds of steps that we would like to see not just from our close allies and partners in places like Europe but from countries around the world."

"We do believe that this is consistent with tightening the noose on Iran economically," she said.

A U.S. Treasury official said Tehran's oil revenues could be choked off without disrupting global oil markets.

Treasury Secretary Timothy Geithner will travel to China and Japan next week to discuss U.S. sanctions on Iran and the state of the global economy.

The embargo will force Tehran to find other buyers for oil. EU countries buy about 450,000 barrels per day (bpd) of Iran's 2.6 million bpd in exports, making the bloc collectively the second largest market for Iranian crude after China.

Prime Minister Mario Monti said Italy was ready to back an oil embargo as long as it was imposed gradually and deliveries to repay Tehran's debts to Italian energy firm ENI were exempted.

The news caused a spike rise in oil prices, with Brent crude peaking at nearly $114 a barrel in intraday trading, up nearly $2 from Tuesday's close. Brent crude closed at $113.70, up $1.57. Crude for February delivery was up 26 cents Wednesday, to $103.22.

Tehran insisted it would have no trouble: "We could very easily replace these customers," said S. M. Qamsari, International Director of the National Iranian Oil Co.

Read more...

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'With sanctions on Iran oil, US chokes own economy'

Iran is the world's #3 oil supplier in the world. If there is any confrontation with Iran, oil could skyrocket to $150 per barrel or more almost immediately.

XP3 from Fuel Direct helps soften the blow of high gas prices at the pump!

Oil prices rise amid global economic worries

From the Washington Post:


With the world economy so weak, why are oil prices so high?

Economic crisis grips Europe, slow growth plagues the United States, and China’s breakneck expansion shows signs of a slight slowing.

 Euro zone leaders aim to stem the continent’s debt woes as protesters take to the streets in some countries to show their dissatisfaction with austerity measures.

Yet the global price of oil might set a record this year as consumption creeps up and world output struggles to keep pace.

The Energy Information Administration said this week that the average retail price of regular gasoline is the highest ever recorded during Thanksgiving week, 49 cents a gallon more than this time last year. AAA says this year motorists are on track to pay a record $490 billion for gasoline, burning a hole in consumers’ pockets.

Recently, prices at the gas pump have tapered off. AAA says that gasoline prices have dropped about 12 cents in the past month to a nationwide average of $3.33 a gallon for regular, giving holiday motorists some reason to give thanks.

But this season is usually a period of relatively weak gasoline demand, and retail gasoline prices are still high by historical standards in the United States. Although U.S. motorists seem to change their driving habits most when gas prices near $4 a gallon, the EIA statistics show that consumption this month has been as low as or lower than any November since early in the previous decade.

Moreover, the prices of other petroleum products have been heading higher. With cold weather starting to set in, home heating oil prices stood at $3.94 per gallon as of Nov. 21, an increase of 83 cents a gallon from a year earlier, the EIA said. The higher prices will primarily affect homeowners in New England, where heating oil is still commonly used.

Diesel prices have climbed, which analysts said was a sign of improved economic activity and constraints on refiners because of the government’s low sulfur requirements. A recent Barclays Capital report said that total miles driven by U.S. truckers was up 3.5 percent over the year before.

Diesel prices Wednesday stood at $3.98 a gallon, up 13 cents from a month ago and up 80 cents from a year ago, AAA said.

Diesel prices, closely linked to the trucking business, suggest a disconnect between the economy and the glum mood of consumers.

“The sentiment indicators are gloomy, but the production indicators are pretty good,” said Adam Sieminski, chief energy economist at Deutsche Bank. “If you add up what consumers are spending, the numbers are higher than last year. If you ask them how they feel, they say ‘terrible.’ ”

Behind the retail prices of petroleum products lies a global crude market that is still roiled by geopolitical turmoil and economic uncertainty.

The benchmark West Texas Intermediate crude oil this year has averaged more than $94 a barrel, only slightly below the record year of 2008 before the recent recession, and nearly 50 percent more than levels just five years ago. The more widely used benchmark Brent crude in London has cost more than $100 a barrel since early February. On Wednesday, it fell $1.81, or 1.7 percent, to $107.22 a barrel for January delivery after pessimistic economic signs in Europe.

The Benefits Of XP3

XP3 Fuel Enhancer from Fuel Direct is an innovative and multi faceted fuel enhancer. It has many advantages in improving the operation and efficiency of running gasoline or diesel powered engines.

XP3 is designed to improve the performance and effectiveness of gasoline and diesel fuels. The primary result is that it reduces the amount of fuel which is necessary to power a vehicle. It also improves maintenance costs.

XP3 disperses water in the fuel so the fuel can burn more efficiently and effectively. XP3 also contains no toxic emissions. It also reduces the amount of fumes since it enables the fuel to burn more completely and effectively.
There is no alcohol contained in XP3 Fuel Enhancer. This enhancer acts as a detergent and actually helps to clean critical engine components from the inside out. It has an antioxidant effect and can greatly extend the life of your engine. It will also reduce the amount of corrosion in your engine.

After using XP3, you’ll find that your vehicle starts easier and avoids pre-ignition or knocking. XP3 has been shown to improve the stability of the fuel it has been added to which is great for seasonal equipment. It also improves the lubricity of the fuel. This helps to reduce engine wear and lowers the overall operating temperatures of the engine.

This product is designed to work with all kinds of gasoline or diesel fuels. It is easily added to the fuel and comes supplied in a variety of sizes ranging from individual bottles which can be added to a typical thankful of fuel up to much larger sizes which are designed to be added to fuel which is contained in larger dispensing tanks.

It is composed of synthetic resins and organic compounds. Since it does not contain any aromatics or naphtha, it is 100% biodegradable. This is welcome news for anyone who truly cares about our environment.

A great advantage of XP3 is since it helps to disperse free water in fuel, the tendency of the fuel to freeze in cold weather is greatly reduced. This is a wonderful advantage for drivers who operate their vehicles in colder weather. XP3 diesel formula also has anti-gelling properties that prevent gelling of the diesel fuel to -60f.

What Will Your XP3 Story Be!

I drive a 2010 V6 Ford Fusion. The best gas mileage that I had received was about 29 mpg overall. Fords official fuel economy calls for 29 mpg highway so I feel that I am on the top end of the scale.

My first tube of XP3 that I poured in the tank went in and then onto the pavement. So I poured another tube in same thing! I had been using XP3 in my Camry and received great gas mileage so I knew how well the product works but I couldn't get it in the tank. After going months without using XP3 I asked another member about how to pour and he suggested pouring XP3 in the gas pump handle and then sticking the handle in the tank. It worked.

I didn't pay much attention until today. On my 5th tank while driving to the Minneapolis airport I looked at the dashboard and the Miles Per Gallon read 36.2. Wow!

Looking at the cost of XP3 VS the benefit:
A 16 oz bottle of XP3 gas formula treats 400 gallons. At $39 per bottle, the cost per treated gallon is roughly 10 cents. With gas in some areas around $4 per gallon a 20% savings is like trading a dollar to buy xp3 and receiving $8 back in savings.

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How to Use XP3 Fuel Enhancer

XP3 is easy to use. If you intend to use it to treat gasoline, it should be added to the gas tank before fueling. The product is designed such that 24mL of XP3 Fuel Enhancer should treat up to 24 gallons of gasoline. You should see positive results the first time you use it. However if your vehicle has not been serviced for a long, it may take a few treatments to see noticeable results.

The individually sized bottle is designed to treat a typical fuel tanks worth of gasoline. It also comes in a larger size of 480mL which and treat up to 400 gallons of fuel. This is useful for fleet applications which use a larger dispensing tank.

If the product is used to treat diesel fuel, you should add 1 ounce of XP3 fuel enhancer to a tank which contains about 30 gallons of fuel. It also should show results almost immediately. However if the vehicle has not been serviced regularly, then it makes take several applications to see the most significant results.

The XP3 diesel fuel enhancer comes in several convenient sizes. The 24mL bottle can treat up to 24 gallons of fuel. The larger 120mL bottle treats about 120 gallons of diesel fuel. And the 480mL bottle is designed to treat 500 gallons of fuel.

It is available in a one gallon size and can treat up to 4,000 gallons of fuel. And the largest size container of 2.5 gallons of XP3 additive treats up to 10,000 of fuel. So no matter what your application, there is a convenient size of product for you.

XP3 is only available through Fuel Direct. For more information on how you can save an average of 75 cents per gallon and earn cash go to: www.fueldirectsavings.com

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XP3 truckers video shows how XP3 disperse water. XP3 significantly improves fuel economy, improves engine performance and has anti gelling properties to -60 degrees.

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At the Fuel Direct Birthday bash held October 15th, the new compensation plan was announced.

Basically, If you thought the 2 x2 cycle matrix was good, wait until you grasp ho awesome the new plan is. We will all receive raises about 4 times the pay level as before. The residual side of the commission remains the same.

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Consumers In The U.S. Are Increasingly Using Credit Cards To Pay For Basic Necessities

Consumers in the U.S. are increasingly using credit cards to pay for basic necessities as income gains fail to keep pace with rising food and fuel prices.

The dollar volume of purchases charged grew 10.7 percent in June from a year ago, while the number of transactions rose 6.8 percent, according to First Data Corp.’s SpendTrend report issued this month. The difference probably represents the increasing cost of gasoline, said Silvio Tavares, senior vice president at First Data, the largest credit card processor.

“Consumers, particularly in the lower-income end, are being forced to use their credit cards for everyday spending like gas and food,” said Tavares, who’s based in Atlanta. “That’s because there’s been no other positive catalyst, like an increase in wages, to offset higher prices. It’s a cash-flow problem.”

Rising costs of food and gasoline are leaving Americans less money to spend discretionary items, slowing the pace of the recovery, Tavares said. Household spending accounts for about 70 percent of the world’s largest economy.

After-tax income adjusted for inflation fell 0.1 percent from January through May, according to figures from the Commerce Department. The drop came as Labor Department data showed energy prices rose 8.2 percent and food climbed 2 percent during the same period.
‘Dramatic’ Swings

The swings in purchases of fuel and food have been “dramatic,” Tavares said. The volume of gasoline purchases placed on credit cards jumped 39 percent last month from a year earlier, compared with a 21 percent increase in June 2010, he said. Food shopping increased 5 percent after falling 7 percent last year.

The value of an average transaction on credit cards outpaced the gain for debit cards, showing consumers are increasingly relying on borrowing to pay for gasoline and other necessities, Tavares said.

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612-702-6234

Fuel Direct-JULY OIL RUSH CONTEST

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New Fuel Direct Video

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This will be added as the "Welcome Video to the main Fuel Direct site in the next week or so.
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15 Reasons For Gas To Hit $5 Per Gallon

1. Japan is boosting oil and gas imports as their nuclear program melts down

In the past few months, the tsunami and nuclear disaster in Japan have slowed the need for energy. But in the coming weeks, oil imports are set to surge as the rebuilding gets underway and industrial production ramps up to meet demand.

2. On April 28th, Russia put a 44% tariff on oil exports

The people in Russia and their leaders have pointed fingers at the evil “Wall Street market speculator” and “oil price gougers” as the scapegoats responsible for high gasoline prices.

The political solution was to institute price controls. It has worked as well as expected...

Domestic prices that were now below the cost to produce oil caused sellers of energy to export their wares out of the country so that they could get a higher price. This in turn led to shortages within Russia. Buses and trucks stopped running due to lack of gasoline.

The politicians reacted by supplying even more government. The export tariff was raised to 44% to encourage domestic supply. This plan has failed; the gasoline producers would still be selling at a loss.

They are now sitting on their gas and waiting for better days.

3. Rolling blackouts in China

China is attempting to stop inflation by setting low prices for oil. This has created rolling blackouts in key industrial provinces that will take half a percent off of GDP.

4. India is paying billions in subsidized prices

India is in a similar boat as China. The country imports 73% of their fuel. Inflation is inching towards the double digits.

Do they allow the fuel prices to float — and feel the inflation and suffer the corresponding riots... Or do they continue to spend billions they can’t afford to keep prices low?

5. Sudan rescue workers can't move food because they have no gasoline

In war-torn Sudan, a border village was attacked last weekend by the North. Doctors Without Borders and other aid workers can’t get in to move food and shelter, due to the lack of gasoline for the trucks.

6. The Mongolian stock market lost 30%

Mongolia imports the vast majority of its gasoline from Russia — or did before April 28th...

The stock market fell in the past month because miners can't run their gear without diesel. I was scheduled to speak at an investment conference in UB that may be canceled due to lack of transport.

That said, Mongolian-based oil companies are doing very well.

7. Kenya is rationing gasoline

Two weeks ago, I was in Kenya. Many gas stations didn’t have any more fuel to sell. The shortage lead the news for the entire week I was there.

The U.S. has an effective ban on offshore drilling. There have been no new offshore oil drilling permits issued by the Federal Government since the BP spill last summer.

8. Libya is in chaos

Our newest war in the Middle East has entered its fourth month. More infrastructure is destroyed daily.

9. Chavez nationalized failure

Venezuela oil production continues to slide due to corruption and poor management. From UPI:

State-run oil corporation PDVSA sacked half of the directors on its board after the energy giant's pension fund was found to have lost $453 million in a Ponzi scheme linked to an investor in Connecticut. It was the latest of financial woes to strike the troubled oil company. The fraud apparently took place in 2004 but was discovered only recently.

10. No nukes

Germany is halting all nuclear power production by 2020; seven older plants have already been closed.

Nuclear energy is now supplying 25% of Germany’s energy needs.

Despite what you hear out of the green party, the majority of this power will be replaced by oil or natural gas — not by wind and solar.

11. Global oil production is flat and falling

oil june 2

12. Exports are expected to decline

exports june 2

13. The U.S. dollar keeps falling

dollar june 2

14. The Saudis can’t help

A senior Saudi oil official recently said the Kingdom “expects oil production to hold steady at an average of 8.7 million barrels per day to 2015.”

Domestic Saudi oil demand is increasing 10% per year. So expect a net decline in exports from our “friend” in Arabia.

And the final reason that oil stocks are going up...

15. Energy stocks have found support


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