Impact of Winter Grade Gasoline on the Price at the Pump?

[Cliff_N]

Yahoo Finance has a great platform for tracking stocks. Unfortunately, much of their news is written by sycophants for the Walking Mummy. They often engage in "Happy talk." Headline:

"Gas prices hit 2023 highs, but analysts think they're peaking." The theory to match their prediction:

"The national average for gas, according to AAA, reached $3.87 per gallon on Friday, just as Hurricane Lee was heading toward northern New England. But there's likely good news ahead for consumers: Analysts think prices will come down due to use of winter-grade gasoline, which costs less to make."

Question for Dan...Apparently low grade gasoline will reduce the price per gallon about .10 cents. Many of us on this board expect that WTI and Brent crude will continue to increase...some analysts talking about $100 per barrel. Will low grade crude offset these increase in crude oil prices?

Article on Yahoo Finance here: https://finance.yahoo.com/news/gas-prices-hit-2023-highs-but-analysts-think-theyre-peaking-113206056.html

[dan_s]

Summer Grade gasolines are made with less butane. Since butane is much cheaper than crude oil, winter grade gasolines are cheaper to make. BTW this is not a national thing. Winter grade gasolines in Chicago can have more butane than winter grade gasolines in Florida.

Going from Summer Grade to Winter Grade gasoline should lower national gasoline prices by 10 to 15 cents per gallon. A $10 increase in crude oil prices adds about $0.22/gallon for gasoline.

This has nothing to do with Team Biden's policies.