How much does gas cost in your hamlet?
Here in the Los Angeles Basin the price of gas is now over $4 per gallon. One year ago, it was just $2.89. Could this be an example of what Fed Chair Jay Powell calls “temporary inflation?”
Maybe so. Certainly, supply will increase to meet demand. At the time of this writing, the latest Baker Hughes rig count shows 430 active drilling rigs. That’s 13 more rigs than the prior week. But 234 less than one year ago.
We have a hunch that Los Angeles gas prices in excess of $4 per gallon will be here until at least the fall – possibly longer. Especially now that California refineries have switched over to producing state mandated summer blend gasoline.
What’s more, gas price increases may also be a function of rampant money printing…in addition to rising demand. Thus, gas prices could go much,