PRDGUY saidcould be but it will be awhile. today RBOC wholesale gas price is $1.897 while the spread between WTI (West Texas Intermediate) and North Brent has reversed and now is increasing again! WTI is down .62% while North Brent is up 1.57%... so while a 20 cent drop in the next four to six weeks is likely...$2 a gallon gas is at least off until November when the refineries in the US switch back to the winter blend. unfortunately then we are in the holiday season and prices usually rise 7 to 10 cents historically. and Iran's production will not come online for 9 to 12 months if at all.
Great info, thanks for providing this analysis, the Arizonans will block your post! Could you answer a question . . . Is it true that Arizona refuses to use California gas, and that's why Arizona gas is 30 cents more expensive than New Mexico and Colorado?
Does this have anything to do with Mobil refineries in California having back room ties to the state of Arizona and its cities?
Where does Nevada get its gas? I've never seen a Mobil station in Nevada, but they are all over small town Arizona and California. Very fishy.
I don't know about the geopolitical implications in Arizona specifically however three main pipelines serve Arizona- all owned by Kinder Morgan... two of the lines coming from Texas specifically El Paso refineries, while the third main line comes from California- through Yuma. 70 percent of the gasoline comes from California while 30% comes from Texas.
Southern Nevada is served thru Las Vegas which receives its gasoline via a pipeline from Los Angeles refineries. Northern Nevada (Lake Tahoe / Reno) is served from the San Francisco Bay Area refineries by pipeline and overland transport. Nevada uses the same formulation of higher refined standards of gasoline as California.
Both New Mexico and Colorado use the lower United States standard for gasoline and they are also served several more pipelines than Arizona.