Saturday, August 29, 2015

Where's promised cheap Gasoline after Crude Oil Plunged 50 percent?

From the August 2014 to August 2015, the Crude oil prices have dropped 60%. Where as the Gasoline for the same time has only dropped from $3.40 to $2.63, which is only 22% drop. What happened to promise that the cheaper Crude price means, cheaper gasoline? For the month of July 2015 at $2.70 a gallon, the EIA analysis shows that 46% is for Crude, 25% for refining, 13% distribution&marketing and 16% for taxes. So, what really happened? In California, the average price of regular gasoline across CA was about $3.90. That's only 10 cents lower than last July's average price in CA. This is even more mysterious as why the Gasoline price seem to have divorced from Crude oil price. We know that there a lag time of 3 months, from the crude oil price drop in the markets, to get the crude oil to refinery at the new market price. Here, the Crude oil prices have been continuously falling since last August. So lag time is not at play for not seeing the lower prices? So, what is the reason?
The bottom line: U.S. oil refineries have profited from processing cheap oil and passing only some of the savings to consumers.

Monday, August 17, 2015

PM Modi Visit to Dubai.

Dubai is fascinating place. First city in the world which created a 7 star Hotel! Mr Modi, the Prime Minister of India visited this today. Well, where does the economy of this state stands now? Well, not a promising one. Let's take the visit of Mr. Modi to Brazil last year!. After his visit, Brazil has entered in to recession this. Add to that trouble, the President Dilma Rousseff is facing impeachment call in the nation, today. He was in Russia recently. Russia was already in recession when he visited. Its getting worse now! Well, UAE is entering into recession now. Somehow, Prime Minister Modi seems to visiting the places, where the recession is arriving!. May be, he's got something that we do't know of. Only history will tell that!