PeakOil is You
Crude price: Nothing to see here folks, move along please
Re: Nothing to see here folks, move along please, move long.
by DantesPeak » Sun 22 Oct 2006, 12:30:05
$this->bbcode_second_pass_quote('willjones4', 'W')hat I dont understand is why prices arent lower given the current oil price. Shouldnt it be less than $2/gal with oil hovering around $58/bbl? Its like $2 is the threshhold...
The profit margins of gasoline for oil refiners has plunged over the last few months, making gasoline drop a lot more than the change in the price of oil.
Also I think low refinery margins will lead to low gasoline inventory levels - as refiners reduce prodcution and imports are cut back.
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DantesPeak - Expert
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by shortonoil » Sun 22 Oct 2006, 20:13:50
DantesPeak said:
$this->bbcode_second_pass_quote('', 'A')lso I think low refinery margins will lead to low gasoline inventory levels - as refiners reduce prodcution and imports are cut back.
$this->bbcode_second_pass_quote('', 'A')lso I think low refinery margins will lead to low gasoline inventory levels - as refiners reduce prodcution and imports are cut back.
Dantes, have you got any good links on refiners margins? I can’t seem to find any that answers my questions about this situation.
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shortonoil - False ETP Prophet
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by DantesPeak » Sun 22 Oct 2006, 21:02:44
$this->bbcode_second_pass_quote('shortonoil', '[')b]DantesPeak said:
$this->bbcode_second_pass_quote('', 'A')lso I think low refinery margins will lead to low gasoline inventory levels - as refiners reduce prodcution and imports are cut back.
$this->bbcode_second_pass_quote('', 'A')lso I think low refinery margins will lead to low gasoline inventory levels - as refiners reduce prodcution and imports are cut back.
Dantes, have you got any good links on refiners margins? I can’t seem to find any that answers my questions about this situation.
Here is a recent story, but doesn't go into the details you probably want to know:
$this->bbcode_second_pass_quote('', '
')MarketWatch
Last Update: 3:13 PM ET Oct 18, 2006
Explaining the dip in refinery activity
Some moderation in refinery activity had been expected, "given the start of the fall maintenance schedule at some refiners," said Shankar.
"Refiners are also certainly reacting to the sharp drop in margins over the past month," he said.
"The dramatic fall in gasoline -- and to a lesser extent diesel -- prices has led refiner margins to fall back from record levels this summer to more average levels," he said. And "it is difficult to believe that refiners are not reacting to this sharp drop in margins by easing back on production."
Shankar said he expected as much and it's one of the reasons he predicts that gasoline prices are "unlikely to fall much farther going forward."
Marketwatch
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DantesPeak - Expert
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