Gasoline prices are on the rise with prices up another 2.46% today. Nigerian rebellions are increasing and threatens to destabilize the region’s sole source of oil. In addition we have more US refinery problems, threats to European gasoline supplies, talk of Belgium union oil workers going on strike in early May (Belgium accounts for 4% of Europe’s refining capacity) and the current stocks-to-consumption ratio at 21.0 days. This is more than 2.0 days below the seasonal average and below levels that typically follow summer’s peak demand season.
Keep this on your radar - on May 21st Iran will begin rationing gasoline domestically, and shall raise the price of gasoline to the public by 25%. This will undoubtedly get interesting as Iran sits on 10% of the world’s proven oil reserves and yet after 5/21/07 the Iranians will be allowed to only buy less than one gallon of gasoline per day. What will those people do in Tehran and other cities? We can be sure the black market for gasoline which is already a “thriving market” will become more active.