Update on gas inventory and prices

I blogged recently about $4 per gallon gas and the evidence for it keeps piling up. Robert Rapier investigates the U.S. weekly petroleum report and he's been hopeful that gasoline inventories would turn around in recent weeks to build up for the summer season (and help moderate prices). It hasn't happened.

On a days of supply basis, this week's inventory number is the lowest we have ever seen in the spring, prior to peak summer driving season (emphasis mine).

Summary of the price pressure:
1. It's a supply problem. Refiners have simply not kept pace with gasoline demand as they've been switching to summer gas formulations.
2. It's not an oil shortage, it's a gasoline shortage. Oil stocks keep rising.
3. Demand continues to surge up despite already higher prices.

In other words, get your checkbook ready - prices are going up (price chart courtesy of GasBuddy.com):