OT U.S. May Be Heading for a Gasoline Crisis, Petroleum Argus Warns

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http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/01-24-2000/0001122123&EDATE=

U.S. May Be Heading for a Gasoline Crisis, Petroleum Argus Warns

HOUSTON, Jan. 24 /PRNewswire/ -- The oil industry may be heading for a crisis this spring as refiners are unprepared to meet consumer gasoline demand in the United States, according to Argus Global Markets, the authoritative weekly energy newsletter published by Petroleum Argus.

Last week's surge in heating oil prices in New England are only a foretaste of the crisis looming in the gasoline market. Oil prices in the United States have risen to over $30/barrel, their highest levels in almost a decade, and heating oil prices have soared as frigid temperatures sweep across the northeast. The oil industry has been drained of product stocks by Opec's prolonged cuts in oil production and was ill-prepared for the unexpected surge in winter demand. But last week was just a hint of an even deeper crisis that looms over gasoline, Argus Global Markets warns in its lead editorial.

U.S. and European gasoline stocks are at their lowest levels of the past decade. The industry has little capacity to supply much more gasoline, particularly with crude stocks depleted and distillate demand high. Runaway prices for gasoline will affect almost everyone in the U.S. Petroleum Argus notes that in an election year, this could mean political uproar.

Spot gasoline prices in the U.S. are already as high as in 1996, when President Clinton speeded up a draw-down from the Strategic Petroleum Reserve to calm markets and boost his re-election campaign. Gasoline demand this year will approach 8.5 million barrels per day, 7 percent higher than in 1996, yet stocks are lower, providing less cover. It may already be too late to rebuild stocks in time to cushion peak demand, and this threatens regional shortages and price spikes.

-- PA Engineer (PA Engineer@longtimelurker.com), January 26, 2000

Answers

Thank you for this post PA. =)

-- Dee (T1Colt556@aol.com), January 26, 2000.

Sorry I left off the last paragraph. :(

http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/ 01-24-2000/0001122123&EDATE=

U.S. May Be Heading for a Gasoline Crisis, Petroleum Argus Warns

HOUSTON, Jan. 24 /PRNewswire/ -- The oil industry may be heading for a crisis this spring as refiners are unprepared to meet consumer gasoline demand in the United States, according to Argus Global Markets, the authoritative weekly energy newsletter published by Petroleum Argus.

Last week's surge in heating oil prices in New England are only a foretaste of the crisis looming in the gasoline market. Oil prices in the United States have risen to over $30/barrel, their highest levels in almost a decade, and heating oil prices have soared as frigid temperatures sweep across the northeast. The oil industry has been drained of product stocks by Opec's prolonged cuts in oil production and was ill-prepared for the unexpected surge in winter demand. But last week was just a hint of an even deeper crisis that looms over gasoline, Argus Global Markets warns in its lead editorial.

U.S. and European gasoline stocks are at their lowest levels of the past decade. The industry has little capacity to supply much more gasoline, particularly with crude stocks depleted and distillate demand high. Runaway prices for gasoline will affect almost everyone in the U.S. Petroleum Argus notes that in an election year, this could mean political uproar.

Spot gasoline prices in the U.S. are already as high as in 1996, when President Clinton speeded up a draw-down from the Strategic Petroleum Reserve to calm markets and boost his re-election campaign. Gasoline demand this year will approach 8.5 million barrels per day, 7 percent higher than in 1996, yet stocks are lower, providing less cover. It may already be too late to rebuild stocks in time to cushion peak demand, and this threatens regional shortages and price spikes.

The oil crisis will come to a head this year in the U.S. gasoline market, notes Petroleum Argus. Opec seems unaware of the danger, because it is watching the wrong end of the supply chain. When the crisis hits, it will be too late for oil producers or refiners to do much about it. Opec will lose credibility. But oil companies will receive most of the flak from consumers and regulators. In the end, the whole industry relies on consumers. To arouse their anger is commercially reckless and politically inept. Web site: http://www.petroleumargus.com.

-- PA Engineer (PA Engineer@longtimelurker.com), January 26, 2000.


In that case, its about time to 'BOMB THE SH*T OUTTA SOMEBODY'!!! Besides, AlGore needs his 15 minutes of fame yet.

-- Porky (Porky@in.cellblockD), January 26, 2000.

Makes me wonder if there are any economists out there... Remember total revenue, marginal revenue, etc.? Surely the Arabs, oil producers, & politicians don't want America to use it's ingenuity to become independent of oil! Next they'll be doing without electricity, then natural gas, then store-bought food. What next! Life without doctors 'cause no one needs them. What a nightmare!

-- Okie Dan (brendan@theshop.net), January 26, 2000.

This was posted about 20 threads down with responses.

-- ~~~~ (~~~@~~.xcom), January 26, 2000.


Bet this would hurt Gore's campaign, huh?

-- Hokie (Hokie_@hotmail.com), January 27, 2000.

"as refiners are unprepared to meet consumer gasoline demand"

Petroleum Argus does not explain why it singles out refiners - later in the article it discusses a dearth of crude, which isn't a refinery problem. What does Argus know that the rest of us aren't allowed to say?

-- Brooks (brooksbie@hotmail.com), January 27, 2000.


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