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What's Pushing Gas Higher?

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    Platts director of news John Kingston on what's causing gas prices to spike.

  • Duration 3:01
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I deserves it.

And Democrats preparing to kick op there commencing in Charlotte admits the highest Labor Day gas prices on record.

The national average is now up over to -- -- down from last month.

Joining us now from Houston to.

Kingston of plaques Thomas driver I -- -- twice a week I had seen those gas prices go up.

Interestingly though not because of hurricane Isaak are that.

No -- really turn out to be a non event for this community a loss of I don't know ten million barrels and total production which is not nothing but I think the markets already take that in.

There's one refinery discuss some issues as a result devising but I think guys -- to the market was essentially non event.

So what is it then because you're concerned with the supply of gasoline are you.

-- must flats are concerned with the supply of crude -- I'm not concerned with the supply of gasoline you know markets at times can be crude -- and they can be products like.

I think this is certainly one of those times when its products -- and specifically it is -- distillate led diesel led.

-- all of those markets are looking very strong relative to gasoline inventories are very tight I think you have some other things that have affected the market but some changes in shipping.

As shipping standards for the kind of -- -- using ships I think also leave the US northeast is tightening up -- specifications so a lot of really higher sulfur stuff.

Which -- -- -- in the past which in many wasn't -- cleanest stuff but it was little cheap.

That's all that point on the diesel market so I think you've really got -- -- easily you know that as far as the average person on the street how they watch that well they can look at that spread.

In between gasoline and diesel of those stations -- so both.

Back in 2008 when everybody was screaming about that gasoline prices -- was actually at times almost a dollar higher.

Which at that point was just unprecedented so it seems to be diesel leading the market right now.

Interesting then if gasoline crew -- -- the issue why was there talk about tapping the strategic petroleum reserve.

Well I think that the talk was mostly because of politics I have to think that the Obama administration is getting a little worried about this.

I noticed that the consumer confidence index last week was down and I really think that the consumer confidence index.

Has when people see that price of gasoline going up.

It really takes a lack of confidence even more so than is probably justified so I think it was politics I do think interesting some news from this morning.

The IEA executive director Herman van -- -- made a comment in and in India.

That the crude market is well supplied.

-- products -- a little tight.

And I think that she's kind of taking a little push back to the G-7 statement which almost -- there.

To hint that possibly releasing oil from the SPR or for strategic stocks if you gonna do that you would do that in a coordinated way with -- IAEA.

For her saying that -- stocks are ample she's kind of saying I don't think that this is a good time for that so.

I think she knows that any push right now to release oil from.

From crude stocks -- be politically driven by the Obama administration.

Just like in that 2000 when the Clinton administration yeah well.

And candid as to your point unnecessary.

John -- Cineplex thanks for sharing -- thought sir thank you know.

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