Retail diesel jumped almost as much, 16.75 cents.
Crude-oil prices, which moved up an equivalent 21 cents per gallon during the same periodthe near-month futures contract closing at $80.50are speaking. But what are they saying? They are not citing an obvious cause of a jump, as in [image-nocss] a world crude-oil-demand surge or some big loss of oil supply. There is currently no evidence of either.
Although it may be that after some lag time has played out, today's market proves to be enjoying some support from oil demand recovery in some pockets of the Third World, that would not seem to be enough to explain a leap of nearly $9 per barrel between Oct. 9 and Oct. 23.
From extended futures oil prices on the NYMEX, nearly $89 per barrel three years from now, for example, one may infer that expected oil-demand growth in developing countries, and that feared U.S. dollar weakness down the line, are not only reflected in 2012 oil futures but may be contributing to current oil-price strength.
Regardless, weak U.S. gasoline demand and flush gasoline supply notwithstanding, the current retail price is just 12.3 cents under its year-ago level and will soon exceed it. Gasoline consumers are about to lose that positive, a discount under last year, in a poor economy. Refiners and retailers each lost gasoline margin on average, again.
Financial pressures on all three parties contrast sorely with the oil producers' recent gains. If such gains sustain and mount, incentivizing greater production, then oil prices will back off, taking a lot of pressure off wholesale and retail gasoline.
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