It appears President Biden is about to have yet another big problem as gas prices at the pump will be above cycle highs within a week.
As Biden warmongers with Russia over Ukraine, the geopolitical risk premium rises and lifts crude prices and wholesale gasoline prices.
All of which means within a week or two, gas prices at the pump are going to take out pre-Omicron highs.
Gas prices at the pump for this time of year have only been higher in 2012 and 2013... and even then it was only marginally higher.
Given the chart above, we are well on our way to record seasonal prices.... The problem for Biden now is that SPR stocks are at their lowest since Oct 2002.... ...leaving Biden with no supply ammo and apparently no geopolitical leverage to lower prices, as witnessed by today's OPEC+ snub for increasing production.
As we detailed earlier, oil prices have had a wild ride overnight and are now trading back below levels when the API inventory data hit last night.
Crude remains in backwardation, a bullish pattern marked by near-term prices commanding a premium over those further out.
https://www.zerohedge.com/energy/wti-extends-losses-us-gasoline-demand-slips-inventory-builds
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