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-- more on -- U.S. drivers pumping gasoline at near-record prices
From: Dave Farber <dave () farber net>
Date: Fri, 22 Aug 2003 13:13:28 -0400
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. | +----------------------------------------------+
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- -- more on -- U.S. drivers pumping gasoline at near-record prices Dave Farber (Aug 22)