Calif. gas prices jump by up to 20 cents overnight

Source: SF Gate

SAN FRANCISCO (AP) — Californians woke up to a shock Friday as overnight gasoline prices jumped by as much as 20 cents a gallon in some areas, ending a week of soaring costs that saw some stations close and others charge record prices.

The average price of regular gas across the state was nearly $4.49 a gallon, the highest in the nation, according to AAA’s Daily Fuel Gauge report.

In Southern California, the price jumped 20 cents a gallon overnight to $4.53 in Ventura. And in the Los Angeles-Long Beach area prices went up 19 cents to nearly $4.54. And it wasn’t any better to the north, as a gallon of regular gas in San Francisco averaged nearly $4.60.

In many areas, prices have jumped 40 cents in a week as refinery problems have created shortages and helped send wholesale prices soaring. Some stations ran out of gas and shut down Thursday rather than pay those costs.

Even Costco, the giant discount store chain that sells large volumes of gas, decided to close some stations, the Los Angeles Times ( reported.

“We do not know when we will be resupplied,” read a sign at one Southern California Costco, according to the Times.

Other gas stations charged more than $5 a gallon. The Low-P station in Calabasas charged $5.69 Thursday. The pumps bore hand-written signs reading: “We are sorry, it is not our fault,” the Times said.

While gas prices have spiked around the nation, refinery outages and pipeline problems have added to woes in California.

Among the recent disruptions, an Aug. 6 fire at a Chevron Corp. refinery in Richmond left one of the region’s largest refineries producing at a reduced capacity. A power failure in Southern California has affected an Exxon Mobil Corp. refinery, and a Chevron pipeline that moves crude to Northern California also was shut down.

The national average for gas is about $3.79 a gallon, the highest ever for this time of year. However, gas prices in many states have started decreasing, which is typical for October.

But in California, gasoline inventories are the lowest in more than 10 years — a situation made worse by the state’s strict pollution limits that require a special blend of cleaner-burning gasoline during hot summer months.

Patrick DeHaan, senior petroleum analyst at, said he is seeing the highest prices in the state around Los Angeles, where on Thursday at least five stations have crossed the $5 a gallon mark, including $5.29 in Burbank and $5.11 in Norwalk.

Prices will keep rising, he says, because in the past week wholesale gasoline prices have jumped $1 a gallon, but average retail prices have increased only 30 cents.

“This is one of the easiest forecasts: Retail prices are going to skyrocket,” DeHaan said.

The jump in wholesale prices can be particularly tough on independent gas stations that often pay more for their gas because they are not part of a larger chain.

Tom Kloza, chief oil analyst at Oil Price Information Service, said he’s heard of a few California station owners shutting their pumps rather than charging the $4.90 a gallon or more necessary to break even.

“Wholesale price increases lead to retail price increases,” Kloza said. “But there is some restraint among companies who do not want to exercise their current pricing power and irritate their customers.”

Some analysts think prices nationally will begin to decline soon but say California could see a longer spike given its unique fuel requirements.

“Nationally, I believe most prices will wobble to and fro for the next week or so, with an eventual slow but steady attrition in retail gas prices, particularly in the Midwest and Southeast,” Kloza said. “California is a wild card.”


AP Energy Writers Jonathan Fahey in New York and Sandy Shore in Denver contributed to this report.


Fed Launches QE3 (to infinity), Gold bugs and market watchers lose their S**T!

Fed ‘Currency Debasement 3′ (QE3) Sees Gold and Silver Surge 2% and 4.3%

“Bernanke’s announcement of further money printing and ultra loose monetary policies saw gold and silver surge in all currencies yesterday. Gold rose $34.30 or 1.98% in New York and closed at $1,732.00. Silver soared to a high of $34.781 and finished with a gain of 4.34%.

Ron Paul: “Country Should Panic Over Fed’s Decision”

“The consequence of what the Fed is doing is a lot more than just CPI. It has to do with malinvestment and people doing the wrong things at the wrong time. Believe me, there is plenty of that. The one thing that Bernanke has not achieved and it frustrates him, I can tell—is he gets no economic growth. He doesn’t do anything with the unemployment numbers. I think the country should have panicked over what the Fed is saying that we have lost control and the only thing we have left is massively creating new money out of thin air, which has not worked before, and is not going to work this time.”

Norcini – A Violent Wave Of Short Covering In Gold & Silver

“The stock market hit four and a half year highs, gold is knocking on the door of $1,800, and silver is pushing up toward $35.50.  There was a flood of hot money that had been on the sidelines which came roaring back into the market.  While hard assets were flying high, the US dollar continued to break down.

Felix Zulauf – Gold, Systemic Collapse & The End Of Fiat Money


Operation Screw: The Fed goes all-in on QE

The geniuses at the Federal Reserve have concocted a bold new plan to revive the U.S. economy — print a bunch of money, loan it to Americans at super low interest rates so they can speculate on rising real estate prices, extract the appreciated equity and spend it on consumer goods. In other words, build an economy of real estate, by real estate, and for real estate. The only problem is we’ve been there and done that. The last time it almost destroyed the U.S.economy. I guess almost isn’t quite good enough for the Fed, so now it’s determined to finish the job.

Michael Pento: “I give it a 99% chance that QE3 will be announced on Thursday.”

Source: King World News

Today Michael Pento surprised King World News when he said that he expects gold to hit new all-time highs, and continue moving to the $2,300 level early next year.  Pento, of Pento Portfolio Strategies, also discussed what to expect from central planners this week and how it will impact key markets. Here is what Pento had to say about gold and the Fed: 

“I would expect that we are going to march our way to a new nominal high.  I give it a 99% chance that QE3 will be announced on Thursday.  There will be some form of quantitative easing announced on Thursday.  That will be some combination of ceasing to pay interest on excess reserves or an outright schedule of monetary purchases.”

Pento Continues:

“If that occurs, I think gold approaches its nominal high of $1,920 an ounce, and it inexorably rises close to $2,300 an ounce by early 2013.  I do not measure the value of the US dollar against another flawed fiat currency like the euro.  The ECB has already announced a ‘sterilized version’ of unlimited purchases of sovereign debt.

Now as I went into my (latest) piece on King World News, these purchases will not be completely sterilized….

Continue Reading @ King World News…

Dan Norcini: “You have rising food, rising energy, and now breakdown in the bond market…we are definitely seeing a very important and major shift here.”

Get Ready, Gold Bears To Be Crushed & Silver To Catch Fire

Source: King World News

Today acclaimed commodity trader Dan Norcini told KWN, “… we have a combination of bullish indicators that may very well signal that the gold bears are going to be crushed and overrun.”  Norcini also said, “We could very well see silver ignite.”  

Here is what Norcini had to say: “We have a surge in crude oil and gasoline.  At the wholesale level, gasoline has already surged more than 20% higher.  WTI Crude oil is up near $95 a barrel, and Brent crude is significantly higher.  Not only do we have energy on the move, but we also have grains on the move as well.”

Dan Norcini continues:

“Soybean prices are making record highs, corn is making record highs, and wheat has soared.  The impact of these higher grain prices is going to be with us for quite some time.  So you have rising food, rising energy, and now we are seeing a breakdown in the bond market. 

Bonds have made a low going all the way back to May.  So we are definitely seeing a very important and major shift here…. 


Continue reading the Dan Norcini interview @ King World News…