GasBuddy Blog

Message Forum - Read Message

Category: Daily News Article Discussions > Topics	Add to favorite topics

Author	Topic: Oil Prices May Be Topping Out	Post a Reply Back to Topics

beta11 Rookie Author Illinois Posts:3 Points:641,385 Joined:Feb 2011	Message Posted: Feb 20, 2013 6:44:55 PM Ignore beta11 Report Abuse At $117 per barrel, Brent Crude is approaching levels that have historically coincided with reduced economic activity. If prices rise much further (call it above $120), higher gasoline and diesel prices could take their toll on consumers. Thus a pullback in Brent prices appears to be a distinct possibility. Given that Nymex oil trades at a historically wide discount of nearly $20, it could theoretically fare better than Brent if the spread between the two grades narrows. Yet we expect the spread to stay wide until proved otherwise. This has been our working assumption for several months now and so far, so good. Perhaps the spread will narrow in the third or fourth quarter of 2013 when Seaway pipeline capacity rises to a nominal 850,000 barrels per day from 400,000. Visit Barrons for full article

beta11

Rookie Author
Illinois

Posts:3
Points:641,385
Joined:Feb 2011

Message Posted: Feb 20, 2013 6:44:55 PM

Ignore beta11 Report Abuse

At $117 per barrel, Brent Crude is approaching levels that have historically coincided with reduced economic activity. If prices rise much further (call it above $120), higher gasoline and diesel prices could take their toll on consumers. Thus a pullback in Brent prices appears to be a distinct possibility.

Given that Nymex oil trades at a historically wide discount of nearly $20, it could theoretically fare better than Brent if the spread between the two grades narrows. Yet we expect the spread to stay wide until proved otherwise.

This has been our working assumption for several months now and so far, so good. Perhaps the spread will narrow in the third or fourth quarter of 2013 when Seaway pipeline capacity rises to a nominal 850,000 barrels per day from 400,000.
Visit Barrons for full article

REPLIES (newest first)Ignore Short Messages

hokieburgh Champion Author Virginia Posts:1,092 Points:460,400 Joined:Feb 2007	Message Posted: Feb 21, 2013 8:26:15 AM Ignore hokieburgh Report Abuse hope something tops out.....
alterman156 Champion Author New York Posts:7,465 Points:1,552,775 Joined:Dec 2008	Message Posted: Feb 21, 2013 1:47:28 AM Ignore alterman156 Report Abuse Gasoline should top out.
JohnofGB Champion Author Flint Posts:5,401 Points:1,092,195 Joined:Feb 2010	Message Posted: Feb 21, 2013 1:33:54 AM Ignore JohnofGB Report Abuse It is not the price of crude, its the price of gasoline. They have disconnected. Gas has kept going up.
dandvicb Champion Author Bridgeport Posts:1,217 Points:1,073,180 Joined:Jul 2004	Message Posted: Feb 20, 2013 11:58:00 PM Ignore dandvicb Report Abuse Absolutely ridiculous SPECULATION!!!!!
heydano67 Champion Author California Posts:1,646 Points:353,535 Joined:Feb 2012	Message Posted: Feb 20, 2013 9:26:00 PM Ignore heydano67 Report Abuse would like a good drop
csblesson Champion Author Texas Posts:1,796 Points:349,125 Joined:May 2012	Message Posted: Feb 20, 2013 9:18:22 PM Ignore csblesson Report Abuse Hope that it will come down soon
dbellie Veteran Author Twin Cities Posts:301 Points:45,100 Joined:Nov 2010	Message Posted: Feb 20, 2013 9:15:31 PM Ignore dbellie Report Abuse till they want more $
Mystikal1 Sophomore Author Akron Posts:228 Points:598,860 Joined:May 2011	Message Posted: Feb 20, 2013 9:12:11 PM Ignore Mystikal1 Report Abuse A promise or another dream which seems farther from reality each day as gas prices continue to skyrocket upwards?
esq262 Champion Author Asheville Posts:2,877 Points:643,515 Joined:Jul 2011	Message Posted: Feb 20, 2013 9:05:02 PM Ignore esq262 Report Abuse I hope the insanity stops soon.
Tekkersmom57 Champion Author Syracuse Posts:1,854 Points:696,665 Joined:May 2010	Message Posted: Feb 20, 2013 8:45:02 PM Ignore Tekkersmom57 Report Abuse Way to call it, Night Owl!!! Gas prices are jumping WAY too quickly and need to be stopped!
GarRafFra Sophomore Author Worcester Posts:167 Points:16,150 Joined:Jan 2013	Message Posted: Feb 20, 2013 8:44:34 PM Ignore GarRafFra Report Abuse Pretty soon it will be $250 a barrel.
TomT2Lee Champion Author Cincinnati Posts:5,342 Points:1,593,455 Joined:Sep 2005	Message Posted: Feb 20, 2013 8:31:18 PM Ignore TomT2Lee Report Abuse and Obama and all the rest of the professional political leaches may be confessing to their crimes and going to jail.
bwp9970 Veteran Author Alabama Posts:253 Points:264,175 Joined:Nov 2010	Message Posted: Feb 20, 2013 8:27:59 PM Ignore bwp9970 Report Abuse Sure
BBopp Champion Author Dayton Posts:6,824 Points:1,935,430 Joined:Dec 2006	Message Posted: Feb 20, 2013 8:19:20 PM Ignore BBopp Report Abuse Key words: May Be. I'd like to be able to read the entire article without subscribing.
BluWahoo Champion Author Pensacola Posts:3,092 Points:375,165 Joined:Mar 2012	Message Posted: Feb 20, 2013 7:57:56 PM Ignore BluWahoo Report Abuse May be ... yeah right ... do it and stop talking about it and making excuses why fuel is so expensive.
MidNJ Champion Author New Jersey Posts:7,532 Points:1,169,255 Joined:Sep 2009	Message Posted: Feb 20, 2013 7:43:55 PM Ignore MidNJ Report Abuse "May be" or should be, or will be. All have different meanings.
Night Owl Champion Author Toronto Posts:7,530 Points:1,782,600 Joined:Jul 2004	Message Posted: Feb 20, 2013 7:42:09 PM Ignore Night Owl Report Abuse Oil prices are ridiculously high. The CFTC should be doing its job by stopping greedy Wall Street oil speculators.
lonewolf_947 Champion Author New Hampshire Posts:1,262 Points:571,885 Joined:Mar 2011	Message Posted: Feb 20, 2013 7:39:24 PM Ignore lonewolf_947 Report Abuse Here we go again.........its like a yoyo, up one day, down the next........ this will go on & on until something is done about it.........
PathfinderSC Champion Author South Carolina Posts:9,496 Points:1,826,640 Joined:Mar 2008	Message Posted: Feb 20, 2013 7:18:43 PM Ignore PathfinderSC Report Abuse Would be good if true, Will wait and see.
dh0770 Champion Author Colorado Posts:6,978 Points:671,485 Joined:Jun 2011	Message Posted: Feb 20, 2013 7:10:15 PM Ignore dh0770 Report Abuse Not while the speculators are running things...
mastermariner Champion Author Texas Posts:4,236 Points:490,310 Joined:Jun 2011	Message Posted: Feb 20, 2013 7:09:58 PM Ignore mastermariner Report Abuse Minor correction
humblepie Champion Author Toledo Posts:34,058 Points:2,367,370 Joined:Mar 2006	Message Posted: Feb 20, 2013 7:08:59 PM Ignore humblepie Report Abuse what total bovine excrement