As Covid restrictions ease across the United States, hospitality and leisure-focused businesses must now contend with a new risk—stubborn, elevated inflation that could further curb recovery in the travel industry. The war in Ukraine has driven up global oil prices, pressuring already high U.S. energy ... READ MORE >
gasoline
Consumer choice, self-rationing and preparing for shortages
The war in Ukraine, the cutoff of Russian exports and the possible removal of roughly 4.3 million barrels of crude from U.S. and European markets are likely to have a harmful impact on household balance sheets. Should the conflict continue, we expect it will result in price increases for everything ... READ MORE >
CHART OF THE DAY: Gasoline prices likely to ease as driving season kicks off
The Memorial Day weekend kicks off the summer driving season, and for many people who have avoided public gatherings during the pandemic, it is a welcome chance to take a trip. Those who take to the roads will likely receive a dividend in the coming days and weeks after seeing retail gasoline prices ... READ MORE >
CHART OF THE DAY: The rising cost of eating at home and the lower cost of driving
The overall cost of living remains subdued, with the Consumer Price Index rising 1.4% in January. Over the past six months, the headline inflation rate has remained muted and stands below the Federal Reserve’s 2% implicit target necessary for increased demand and sustainable growth. With an economy still ... READ MORE >
Modest supply shock to global oil to boost US retail gas prices
The attack on the Saudi oil production facility at Abqaiq over the weekend will temporarily remove roughly 5.7 million barrels of oil production per day, or about 5% of the total global supply. The price of global benchmark Brent Crude rose 14.25% on Monday, while West Texas Intermediate was up 14.38%. ... READ MORE >
Wholesale gasoline prices point to 8% rise in retail costs in time for summer holidays
U.S. consumers are likely to feel a modest jolt in commuting costs, as wholesale gasoline futures now point to an 8 percent rise in retail gasoline prices in coming days, with risk of a much more pronounced increase to follow. The surge is due to non-market derived pricing action caused by a recent ... READ MORE >