Jason Schenker Gasoline Quotations

With the year-on-year deficit in gasoline and with economic growth it is hard to be bearish about energy in the short or medium term. The manufacturing and retail numbers, the regional and national numbers, wherever you look they are positive. The same goes for overseas.

The crack spread of gasoline has collapsed, and only an escalation of Iranian tensions could buttress crude at this level.

Near-term energy price spikes, ubiquitous gasoline lines and fear of shortages have exposed the soft underbelly of the U.S. energy complex,

The government's offer of barrels from the Strategic Petroleum Reserve has mitigated some of the upward price pressure on crude oil. The problems with gasoline and natural gas may not be helped even if the SPR is tapped. If refineries are offline and can't run the extra oil, it will make no difference.

With gasoline futures at records a nationwide average of $3 at the pump is likely in the near-term.