Illustrated by Elias Stein
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U.S. gasoline prices are at record highs, averaging over $ 4.50 per gallon at the pump, and for the first time surpassing $ 4 in all 50 states. But Natasha Kaneva, head of global commodity research at JPMorgan, said prices could rise above $ 6 this summer.
Why the rise? Sanctions have reduced exports of Russian oil and refined fuel. US refiners, driven by rising European prices, are sending more diesel and petrol there; They are selling about 100,000 barrels per day more than usual to Mexico and other countries. In the last five years, the United States has stored an average of 65 million barrels of gasoline in mid-May. This year, less than 55 million are available. “Typically, refiners produce more gasoline before the summer road-trip season, creating inventory,” Kaneva wrote. Today, US petrol inventories are at their lowest seasonal level since 2019.
Kaneva predicts that, on top, Americans will use 9.7 million barrels of gasoline per day, while 9.1 million will probably be available. That 600,000-barrel daily deficit is 200,000 more than normal. It could carry the lowest inventory in the United States between the 1950s and August. His math says prices will rise 37%, to 6.20 per gallon.
Another reason: US oil prices, West Texas Intermediate, recently lost its traditional discount to global standards Brent. U.S. retailers now have the infrastructure to sell overseas, accessing U.S. and international demand. What could change the picture? If refineries quickly start pumping more petrol or limit exports, prices could fall. A recession can also do the trick. Consumers should be prepared.
Trouble with retail
The week began with signs of weakness in China, with declining output, rising consumer spending, rising unemployment and flagged junk bonds. US stocks opened (and crypto did more damage), then rallied in April’s retail spending data. But Tuesday’s gains mean losses on Wednesday and Thursday, due to a depressed retail outlook. Friday, d
S&P 500
Toy with bear, but strong. Per week,
Dow Jones Industrial Average
Down 2.9%, to 31,260.58; S&P fell 3.05% to 3901.36; And
Nasdaq Composite
Down 3.8% to 11,354.62
Beat income
Retail bomb test his earnings.
Walmart
Missed, blamed on supply-chain problems and high fuel prices, and its shares fell 11%;
Home Depot
Beating and raising guidelines. But
Target
Missed by many and saw its share crater, taking from retailers
Dollar General
Per
Costco Wholesale
Per
Lo
Of
With.
Not exactly pay pulse
A JPMorgan Chase plan to raise the salaries of senior executives, including CEO Jamie Dimon, has been scrapped by shareholders, with only 31% voting, a record bad number. It is not mandatory, but the bank said it would reconsider.
Intel
Also saw a rejection plan, joining
Ordinary electric
And
AT&T
.
War Grinds On
Ukraine has overtaken Kharkiv by Russian troops.
McDonald’s
And
Renault
They will sell their Russian operations; Google’s unit in Russia will file for bankruptcy. Donbass aggressively collapses, Ukrainian holdout surrenders to Mariupol steel work, Sweden and Finland soften on Putin joining NATO, Russia fails to get much support from its own security confederation, and a military analyst on Russian TV warns the country. And do not win the war. The US Treasury is likely to block the repayment of Russian debt to US investors.
Terror in Buffalo
An 18-year-old man driving in Buffalo, NY, killed 10 people at a supermarket in a major black part of town. The alleged shooter released a racist screed before the attack, which he did livestream. He could be charged with hate crime, terrorism and murder.
History of Deal Making
JetBlue
Later did hostility
Spirit Airlines
Rejected his takeover offer in favor of a deal with
Border
.
JetBlue offered $ 30 a share in a tender offer, but said it would increase if Spirit negotiated. Spirit shares rose 22% … Elon Musk tweeted that he would
Twitter
Only use the bot if the company’s claim is true. He also raised the possibility of a deal failing or a lower price. Twitter shares fall … Activist HG Vora offers নিতে 5.5 billion to take over fleet management and supply-chain operators
Rider Systems
Private.
KKR
Garage-door manufacturer CHI is selling overhead doors
Nukor
For 3 billion … Jonathan Canter, chief justice of the judiciary, warns that the purchase deals will face further scrutiny.
Write [email protected] at avi salzman
