Come August, the entire country will be paying more for a gallon of gas than minimum wage in the states of Georgia and Wyoming. Will the country survive what is soon to come and already in motion?
Summer in the United States is typically when gas prices are highest, and the country is less than a month away from when that all starts.
"How is this possible? Well, as peak U.S. summer driving season begins, record diesel prices are about to take a back seat to gasoline," reports Zero Hedge.
"Toward the end of April, as the May NYMEX diesel contract climbed into expiry, U.S. diesel prices peaked at a $1.63 / gal premium to U.S. gasoline, the highest diesel premium ever. Over the following two weeks, U.S. gasoline prices climbed to close that gap and today gasoline is trading at a 15 cents per gallon premium to diesel."
The reason this is significant, according to JPMorgan commodity strategist Natasha Kaneva, is because refiners typically produce more gasoline ahead of the summer road-trip season to build up inventories. This year, however, U.S. gas inventories have fallen counter-seasonally and currently sit at the lowest levels since 2019.
Gas supplies on the East Coast are in even worse shape at the lowest levels they have been since 2011. (Related: The media is already preparing the public for fuel shortages and rolling blackouts.)
There is really no valid reason for any of this, by the way. It is all being intentionally engineered as the government destroys domestic production while increasing exports.
This is creating artificial shortages and corresponding price hikes, which are making it difficult for millions of Americans to live as they continue to get priced out of being able to afford personal transportation.
Most of the gas being exported is going to Mexico and other Latin American countries. The current average is 0.9 million barrels per day (mbd) being exported out of the country, which is about 100 thousand barrels per day (kbd) above seasonal norms and 300 kbd above summer rates.
"The punchline: if exports persist at this elevated pace and refinery runs, already near the top of the range for reasonable utilization rates, fall within JPM's expectations, gasoline inventories could continue to draw to levels well below 2008 lows and retail gasoline prices could climb to $6 / gal or even higher, according to JPMorgan," Zero Hedge explains.
Unless refiners shift yields toward gasoline and cut exports immediately in order to rebuild domestic supplies, gas availability will only continue to decrease while prices skyrocket.
Since the start of the year, demand for gasoline has averaged around 500 kbd lower than Kaneva's original expectations. It appears as though people are driving a lot less now that gas is unaffordable. At the same time, pent-up covid demand could result in higher-than-normal travel this summer, resulting in increased demand.
"The United States is being run by people who hate the United States," wrote someone at the Hedge.
"Always has been," responded another.
Someone else said that the economy is about to implode to such a degree that 2008 will "look like the 1950s."
"Not even Walmart can make their earnings now," this person added, making reference to a canary in the coalmine for the U.S. economy. "Think about it. The economy is so close to game over."
To keep up with the latest news about the takedown of the fossil fuel industry by the "greenies," be sure to visit GreenTyranny.news.
Sources for this article include: