Mercedes Drivers Stung by Shale Boom’s Quirks at the Pump – Bloomberg 10-28-14

Salient to Investors:

  • The price gap between regular and premium gasoline is at the widest since 2008, caused partly by the supply of shale oil, which is more easily turned into low-octane gasoline. John Auers at Turner Mason said foreign oils produce high-octane fuel better.
  • Patrick DeHaan at GasBuddy Organization said that at current oil prices, the average cost for retail gasoline in the US will drop below $3 within two weeks.
  • Michael Green at AAA said gas stations are more focused on being competitive with regular prices which comprise the bulk of sales – EIA says premium fuel is only 10% of US sales.
  • JBC Energy said that as maintenance work at refineries ends, the price gap should return to normal.

Read the full article at http://www.bloomberg.com/news/2014-10-27/mercedes-drivers-stung-by-shale-boom-s-quirks-at-the-pump.html

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