-- more on -- U.S. drivers pumping gasoline at near-record prices

[Dave Farber <dave () farber net>]

> Date: Fri, 22 Aug 2003 08:51:29 -0700
> From: Ari Ollikainen <Ari () OLTECO com>
> Subject: Re: [IP] U.S. drivers pumping gasoline at near-record prices
> To: Dave Farber <dave () farber net>
>
>
> >Can some are explain to me why the stored gas supplies are low .I assume 
> it too little to do with OPEC supplies
> >
>
>         Refinery problems...including the shutdown of Northeast refineries
>         due to power outage along with low crude stocks with disruptions
>         of supply from Venezuela, Nigeria, and Iraq in the past months.
>         Refined gasoline also comes from Venezuela...
>
>         MTBE, the main additive in reformulated gasoline, is apparently
>         in short supply ...
>
> REUTERS
> Tight MTBE supply lifts Northeast US gasoline prices
> Reuters, 08.21.03, 4:58 PM ET
>
> By Soo Youn
>
> NEW YORK, Aug 21 (Reuters) - Northeast drivers can expect to pay up
> for gasoline until Labor Day weekend, largely as a result of a recent
> jump in fuel additive MTBE prices.
>
> As the result of several factors, including the maintenance,
> shutdown, and reduced production of several of the larger producers
> of methyl tertiary butyl ether, supplies of the oxygen-enhancing
> chemical have tightened, and driven up the price of gasoline as a
> result.
>
> NYMEX September gasoline <HUU3> settled 9.57 cents or 9.5 percent
> stronger at $1.0993 a gallon, after zooming to $1.1220, the highest
> since March 10, when prompt gasoline hit $1.1630.
>
> "MTBE is nonexistent," said one petrochemical trader, nothing that
> MTBE was trading at 30.00 cents over the September gasoline futures
> every day this week. In the beginning of August, MTBE was trading at
> 6.00 cents over the contract.
>
> Traders say the largest producer of MTBE in the world, Lyondell
> Chemical Co. (nyse: LYO - news - people), went into planned repairs
> last Friday for nine days. Lyondell did not immediately return calls
> for comment.
>
> The Lyondell shutdown comes as other producers have either reduced
> throughput or closed down completely. MTBE has been banned from
> California, New York and Connecticut from Jan. 1, 2004, and most
> refiners have already started blending with the corn-based
> alternative, ethanol, consequently reducing demand.
>
> As a result, blending economics are vulnerable to volatile prices for
> the rest of the year.
>
> In addition, little relief from imports was in sight. European MTBE
> prices stayed above $400 a tonne this week after a surge earlier in
> the month amid tight supplies, keeping the arbitrage to the U.S.
> price closed, dealers said
>
>         [...]
>
> http://www.forbes.com/markets/newswire/2003/08/21/rtr1063905.html
>
>         And:
>
>         [...]
>
>   U.S. gasoline supplies are 12.8 million barrels below their levels
> from a year ago, having fallen 1.2 million barrels last week to 196.9
> million barrels, the lowest level in nine months, according to the
> U.S. Energy Information Administration (EIA).
>
> "The fact that supplies fell in spite of an expected rebound of
> 330,000 barrels per day (bpd) in gasoline imports and a 161,000 bpd
> hike in production implies a continued exceptionally strong pace of
> demand," said Jim Ritterbusch, market analyst and president of
> Ritterbusch & Associates in Galena, Illinois.
>
> Demand was at a robust 9.32 million barrels per day (bpd), just below
> the previous week's level of 9.38 million bpd, EIA data showed on
> Wednesday. The driving season usually marks its close by the Labor
> Day holiday weekend, this year to be marked on Sept 1.
>
> "We're now approaching the end of the month and gasoline is in the
> New York Harbor (cash) market is still trading way above the
> screen...that means the screen is cheap," said Ed Silliere, analyst
> at Energy Merchant LLC in New York.
>
> New York Harbor traders quoted prompt reformulated gasoline (RFG) as
> high as 15 cents above the NYMEX screen as RFG stocks fell the
> deepest last week in the East Coast.
>
>         [...]
> http://www.forbes.com/home_europe/newswire/2003/08/21/rtr1063514.html
>
>            +----------------------------------------------+
>            | You need only two tools: WD-40 and duct tape.|
>            | If it doesn't move and it should, use WD-40. |
>            | If it moves and shouldn't, use duct tape.    |
>            +----------------------------------------------+

-------------------------------------
You are subscribed as interesting-people () lists elistx com
To manage your subscription, go to
 http://v2.listbox.com/member/?listname=ip

Archives at: http://www.interesting-people.org/archives/interesting-people/