Every time the market thinks oil won’t go higher, it does. Today it hit $140. To be fair, OPEC president Chakib Khelil said oil could reach $150 to $170 this summer. At the current rate of increase, crude may make those numbers before the 4th of July.
Premium gas is already above $5 in some regions in the US. Regular is over $4.25 many places. Refineries and retailers can only swallow so much in terms of losses. The consumer will have sit at the same table with them soon.
A 1% increase in crude does not represent a 1% increase in gas. Too bad the math is not that simple. Drivers could look ahead a month or two and see what it will cost to fill up at the pump.
Gas will hit $5 throughout much of the US, probably in July. Too much of the auto travel by Americans is mandatory. And, even if it hurts, some people will insist on vacationing by car this summer.
At $87, it now takes one share of Exxon (XOM) to pay for a fill-up.
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