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Mo News: Why Do Gas Prices Keep Going Up?
Mosheh Oinounou
May 09, 2022
Hi everyone,
We're THIS CLOSE to the weekend... and potential 90 degrees days in NY and the East Coast.
Here's today's rundown:
Gas prices have hit yet another record high, and it's having ripple effects throughout the entire economy. All 50 states are now averaging above $4 a gallon. When will we see relief?
Oklahoma is on the verge of banning almost ALL abortions in the state. But what does it mean for IVF?
Finally, some movement on the baby formula shortage: The shuttered Abbott plant is set to reopen within the next two weeks as the Biden Administration is starting to fly in formula from overseas.
Elon Musk is facing a sexual assault claim from a former employee
Um, did someone say... Monkeypox? Do we really have to worry about it?
Rihanna gave birth to a baby boy. But-- what's his name?!
And as always, what we're watching, reading and eating this weekend.
Have a good one! Stay cool ;)
~ Mosh & Jill
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⛽ GAS PRICES KEEP CLIMBING
via AAA
Gas prices have hit another record high, with the national average at $4.59 per gallon, according to AAA. And, for the first time ever, the average price was $4 per gallon or above in all 50 states. In California, the average is above $6 per gallon. ~ CNBC
What's going on? At the start of the pandemic, as much of the world was shut down, there was too much oil supply and collapsing demand. Oil companies slashed production. But the economy roared back, along with demand. Oil companies couldn't keep up and still can't. That's sent the price of crude oil-- the main ingredient in gas-- much higher. Add to that Russia's invasion of Ukraine, and oil company reluctance to drill more due to costs. At the same time, you might have noticed that the price of a barrel of oil is off its peak earlier this year. So why is gas still going up?Refinery Problems: The newest bottleneck appears to be refineries. Before oil can be used, it has to be broken down and purified through a process known as "refining." As Marketplace reports, Russia was not only exporting crude before the war, but also sending out a lot of refined product, particularly diesel. Domestic refineries are struggling to keep up and capacity is already down since the pandemic, particularly in the Northeast. It will be years before we have new refineries online. ~CNBC
What's next? Some analysts expect gas prices will average $5 a gallon between Memorial Day weekend and the Fourth of July, typically the busiest time for driving. JPMorgan analysts actually believe the national average could surpass $6 later this summer.Some perspective: This time last year the price was $3.04 per gallonEven as prices go up, demand remains high. Bob McNally, president at Rapidan Energy Group, said at this point it will take a recession to rein in product inflation. “It’s not a happy forecast. But [gas prices] just have to go higher, because there is no sign yet of real demand capitulation ... they will go higher until that happens,” he said.Business impact: It's not just individual consumers that are paying more for gas. Diesel fuel is also at record highs, and that's driven up the cost for companies like Walmart, Amazon and Target to transport goods. Expect a lot of those costs to be passed down to consumers. Jet fuel is also much higher, which means airlines will also likely raise the price of plane tickets.Target shares plunged 25% this week after the company's CEO said on its earnings call that they'll likely pay a billion dollars more for gas and fuel this year than originally expected: “We did not anticipate the rapid shifts we’ve seen over the last 60 days. We did not anticipate that transportation and freight costs would soar the way they have as fuel prices have risen to all-time highs."
Wall Street: The selloff continues on Wall Street with rising gas prices, inflation concerns and just general worries about the overall economy. The S&P 500 is inching closer to a bear market.
🚨 IVF CONCERNS AS OKLAHOMA BANS ABORTION
Oklahoma lawmakers passed a bill that would ban abortions from the moment of fertilization, which effectively means a near total ban of all abortions in the state. Like the Texas law, it lets civilians file lawsuits against people who perform or get abortions. It will go into effect immediately after the governor signs it into law. ~ Washington Post
What will this mean for IVF?: The bill defines fertilization as the moment a sperm meets the egg. IVF is not mentioned in the bill, but that's what concerns many people in the state--because IVF means creating multiple embryos and typically not using all of them."Looking at the language, it's hard to see how it wouldn't affect in vitro fertilization because it talks about as soon as the ovum and the sperm meet, and the egg is fertilized, that means that's a person... That's what happens with in vitro fertilization, you create embryos." -- Oklahoma State Rep. Emily Virgin (D).State Rep. Wendi Stearman (R), the bill’s sponsor, tells media outlets that IVF isn't mentioned in the bill. But that lack of clarity has medical professionals and IVF patients worried about how authorities and courts might interpret the new law. [We have been getting lots of concerns about it at Mo News like the one below]
What's still allowed: The bill allows for the Plan B pill and emergency contraception. It also allows for an abortion to save the pregnant woman's life or if the pregnancy is the result of rape or incest (that has been reported to authorities). ~ KOKH
🍼 SOME GOOD NEWS FOR FORMULA SHORTAGE
There's finally some action from the federal government when it comes to the baby formula shortage in America. For one, the FDA says Abbott's baby formula plant in Sturgis, Michigan will reopen in one to two weeks. Abbott is the country's biggest supplier of powder infant formula, including the popular Similac brand. The plant was shut down over contamination concerns following reports of several sick infants, but the government has found no connection to the plant thus far. ~ Reuters
Timeline: It will likely take about 6-8 weeks from the time production starts up again until that formula hits store shelves. Another issue: FDA Commissioner Robert Califf says people are trying to stock up on formula so it makes distribution harder. ~NY Times
Operation Fly Formula: The Biden Administration has launched Operation Fly Formula (that is actually the name), in which it will utilize the Defense Department's planes to import formula from overseas.To begin with, the DoD will transport formula from Switzerland to Indiana. The formula is from Nestle, and includes specialty formula for children that are allergic to cow's milk. ~ CNN
Defense Production Act: President Biden also invoked the Defense Production Act, which should help manufacturers get key ingredients in order to ramp up supply.
🗞 THE SPEED READ
via Morning Brew
The outbreak is small — so far 68 suspected cases, including eight in England and 20 in Portugal. Cases in Canada and one case in the U.S. have been reported. There's concern the virus may be spreading through the community — undetected — and possibly through a new route of transmission.(NPR)
The SpaceX CEO denies allegations made by a former flight attendant, whom the company reportedly paid $250,000 as part of a severance agreement in 2018. The documents state the employee accused Musk of "exposing his erect penis to her, rubbing her leg without consent, and offering to buy her a horse in exchange for an erotic massage." (Fox Business)
Payton Gendron, 18, was first arraigned on Saturday and pleaded not guilty. Local and federal authorities were also investigating the possibility of terrorism and hate crime charges. (Yahoo News)
With the administration’s attention having shifted to Ukraine, President Biden plans to emphasize that the United States can counter aggression in both Europe and Asia. (NY Times)
President Biden said Sweden and Finland have the "full, total, complete backing" of the US in their historic decision to apply for NATO membership. Both countries submitted their applications this week but one member, Turkey, opposes the move over a few minor issues. To join the alliance, the two nations need the support of all 30 NATO member states. (BBC)
The final endorsement, from CDC Director Dr. Rochelle Walensky, means 5- to 11-year-olds are eligible for a booster shot at least five months after their second dose. (NBC News)
Increasing numbers of COVID-19 infections and hospitalizations are putting more of the country under CDC guidelines that call for masking and other infection precautions. Right now, about 1/3 of the U.S. population lives in areas that are considered at higher risk — mostly in the Northeast and Midwest.(AP)
Rihanna and A$AP Rocky are officially parents and have welcomed a baby boy to the world. Sources say he was born on May 13 in LA -- but we don't yet know his name. (TMZ)
🎉 CHEERS TO THE FREAKIN' WEEKEND
WHAT WE'RE WATCHING:
David Letterman's "My Next Guest Needs No Introduction' Season 4 (Netflix). Interviews include Billie Eilish and Will Smith (pre-Oscars slap).
George Carlin’s American Dream (HBO)
Downton Abbey: A New Era (In Theaters)
WHAT WE'RE READING: HOW POLITICS POISONED THE EVANGELICAL CHURCH; The movement spent 40 years at war with secular America. Now it’s at war with itself. (The Atlantic) [We have gotten an incredible response to this story on our Instagram feed]
WHAT WE'RE EATING: Seed Mill Tahini Sauce (Great for dressings, sauces and toppings)
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