Gas supplies low heading into summer season

OTTAWA — Refinery problems in the United States have driven up petroleum prices around the world, the International Energy Agency said yesterday, and analysts say refiners are going to have to run full-out to build inventories before the summer driving season.

In its monthly report, the Vienna-based IEA said global crude output was down sharply as a result of production cuts by the Organization of Petroleum Exporting Countries. However, it added: “The primary driver of higher prices has been the tight U.S. gasoline market.”


Many U.S. refiners — as well as Canada’s Imperial Oil Ltd. — experienced unplanned or longer-than-anticipated maintenance shutdowns this winter and spring, driving down gasoline inventories to five-year lows. Canadian gasoline prices reflect conditions in the U.S. markets, with southern Ontario in particular moving in lockstep with wholesale markets in New York.

The U.S. Energy Information Agency reported this week that stocks were 4 per cent below year-ago figures, while, in spite of higher prices, motorists drove up demand by 2.5 per cent.

Globe and Mail