Romm — Experts Say Keystone XL Won’t Do Anything For Gas Prices

Even TransCanada, the company building the pipeline, is careful not to claim the project will lower gas prices: “Prices are set on a global level,” writes the company in a fact sheet.

Read it at Climate Progress
Empty Promises: Experts Say Keystone XL Won’t Do Anything For Gas Prices

by Joe Romm

Gasoline Price Level

NEW YORK (AP) — Gasoline prices have never been higher this time of the year. 

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."

Read it at The Huffington Post

Gas Prices Are Highest Ever For This Time Of Year

by Associated Press

Increase in fuel cost is chiefly thought of as inflationary, but prices increases act very directly on effective demand like a tax increase.

Even more concerning, industry experts are predicting $5.00 gasoline this summer based on the price level in winter. 

The result would be immediately deflationary rather than inflationary as effective demand for discretionary goods was hit hard. Moreover, consumer confidence would take a serious hit, too.

And the situation in MENA is having an impact, too, both the Arab Spring revolutions, the Iran embargo, and the threat of war with Iran.

Why are you paying more for gas? Speculators from Bill Gates to the Yale endowment are buying oil futures

What a joke. As people struggle to pay their bills and put food on their table we allow rich individuals and university endowments to buy oil futures, adding to upward price pressures. Meanwhile, nothing is done. Then, when people demand to know why this is happening, they are given bogus excuses about China and not allowing offshore drilling.

"A range of investors were in the market, too. Yale University, Singapore's government, hedge funds Brevan Howard and D.E. Shaw & Co., as well as pension funds for Texas teachers and Danish workers all held positions, according to the list. Also featured were a handful of individuals, including Aubrey McClendon, chief executive of Chesapeake Energy Corp. (CHK - News), one of the nation's largest producers of natural gas. Cascade Investment LLC, the investment arm for Microsoft Corp. (MSFT - News) co-founder Bill Gates, appeared."