That thing must chug a lot of gas,” I said to my friend who was proudly running his right hand down the side of his big new SUV.
“Not an issue now,” he said as he stopped and patted the fuel cap, a confident gesture referring to low fuel prices. “Besides, it gets better mileage than the last beast I had.”
One month ago, before the commodity trading world's attention turned to the unprecedented glut in gasoline stocks, we wrote "PADD 1 Is A Holy Mess" - Is This What Finally Drags Crude Oil Lower, in which we showed the historic excess of gasoline stocks on the US East Coast, known as the PADD 1 region.
TORONTO — PetroChina, which a few years ago dreamed of quickly becoming one of Canada’s largest oilsands companies, will take time to learn from its first steps in the business before expanding further, a senior executive in its Canadian subsidiary said Wednesday.
“We are excited about the oilsands, but it doesn’t enjoy a particular strategic advantage,” Bob Shepherd, executive vice-president of Brion Energy, as PetroChina’s wholly owned Canadian unit is known, said on the sidelines of the Canadian Association of Petroleum Producers’ investment symposium in Toronto.
The recent crash in oil prices has set the stage for the most-anticipated OPEC meeting in years on Thursday. As oil-producing powerbrokers prepare to gather in Vienna, the Financial Post and Calgary Herald this week present Oil Pressure, a look at the forces buffeting, and buffeted by, the new oil world order. Today, the ties that bind Canada’s economic fate to energy prices.
The state's average gasoline price, though down 5.5 cents from a week earlier, is still higher than during Memorial Day weekend 2008. Analysts say this summer's outlook is difficult to predict.California drivers will pay record gasoline prices over the Memorial Day weekend but could get relief in the weeks ahead — unless more unplanned refinery outages occur.
In the heady days of the commodity boom, oil-rich nations accumulated billions of dollars in reserves they invested in U.S. debt and other securities. They also occasionally bought trophy assets, such as Manhattan skyscrapers, luxury homes in London or Paris Saint-Germain Football Club.
Now that oil prices have dropped by half to US$50 a barrel, Saudi Arabia and other commodity-rich nations are fast drawing down those “petrodollar” reserves. Some nations, such as Angola, are burning through their savings at a record pace, removing a source of liquidity from global markets.
Dubious record alert: American gasoline prices just set an all-time high for February, according to AAA. The average price of gas in February was $3.65 per gallon, 10 cents higher than the previous record for the month set just last year.