Gasoline Gains on Speculation EU May Ban Iranian Crude Imports

Source: Bloomberg

By Barbara Powell

Dec. 6 (Bloomberg) -- Gasoline rose to a four-week high on speculation that the European Union may ban imports of Iranian oil, increasing the cost to produce fuel in Europe and the U.S. East Coast.

Prices gained after EU Energy Commissioner Guenther Oettinger signaled the bloc may have reached an agreement on whether to ban imports of crude from Iran. Refineries on the U.S. East Coast, where Nymex gasoline futures are delivered, primarily use oil priced versus London-traded Brent.

“If the EU were to ban those imports, that supply would have to come from elsewhere and that means more upward pressure on Brent,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston.

Gasoline for January delivery rose 3.17 cents, or 1.2 percent, to settle at $2.6454 a gallon on the New York Mercantile Exchange, the highest settlement since Nov. 8. Prices have gained 7.8 percent this year, and peaked at $3.4648 on April 29.

Read more: http://www.businessweek.com/news/2011-12-06/gasoline-gains-on-speculation-eu-may-ban-iranian-crude-imports.html

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Of local mid-michigan interests (and the reason I sought info on prices), our prices jump up 35 cents today.

Figure this one out.

Gasoline has all kinds of road taxes built in, 19 cents a gallon of just michigan taxes alone, yet heating oil is prices at $3.68 a gallon.

Thankfully they have lowered the minimum delivery amount to 100 gallons from 150.

hmmm...