Gasoline prices/Retailers
By Peter Boockvar - June 19th, 2009, 11:00AM
According to AAA, as of last night, the average price of a gallon of regular unleaded gasoline has been either flat or higher for 51 straight days and has reached $2.69 per gallon, up almost .03 on the week. The .03 doesn’t sound like much but it’s an extra $4b annualized out of consumer pockets and is up .64 over the 51 day time period. Combining this with a still troubled, albeit not as bad, labor market and a deleveraging consumer, it’s no coincidence that retail stocks have recently underperformed the broader market. Off its intraday recent highs, the SPX is down by 3.3% while the RTH is down by 5.7% and the XRT is lower by 8%.
June 19th, 2009 at 6:27 pm
This is nothing new as it happens every spring and summer. Simply put, it is the fleecing of America by the large integrated oil companies during the summer driving season. Decrease capacity, create bigger drawdowns, raise prices. If a hurricane happens to come along which effects supply; even higher prices. Absolute genius? That’s why those CEO’s get paid all the big money…