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stu
News Editor
Joined: Oct 04, 2004
Posts: 2500
Location: Ye Olde Englande
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 Posted: Tue Nov 13, 2007 8:22 am Post subject: Fuel shortages in Russia |
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Russian fuel shortage hits retailers, drivers
| Quote: | Russia's transportation fuels market is facing its biggest crisis in almost 20 years as severe shortages force some retailers to close their filling stations.
As global oil prices beat records, Russian firms are rushing to export both crude oil and refined products. That, combined with outages at refineries in central Russia, has caused a spike in wholesale gasoline and diesel prices.
The shortages have forced wholesalers to ration supplies to retailers, who in turn are unable to pass on higher costs after pledging to the Kremlin to keep pump prices stable ahead of a Dec. 2 parliamentary election.
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http://uk.reuters.com/article/oilRpt/idUKL1388199520071113
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seahorse
Expert
Joined: Oct 15, 2004
Posts: 2185
Location: Arkansas
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| Posted: Tue Nov 13, 2007 9:05 am Post subject: Re: Fuel shortages in Russia |
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| Shortages in France (releasing the SPR to cure), diesel shortages in the Dakotas (U.S.), now fuel shortages in Russia, who exports an then expects its own people to do without. Opec refusing again to raise production, saying its a hedge fund problem, not a supply problem. Facts speak louder than words, and the facts scream out, peak oil. |
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Eli
Fusion
Joined: Jun 18, 2005
Posts: 3886
Location: In a van down by the river
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| Posted: Tue Nov 13, 2007 10:08 am Post subject: Re: Fuel shortages in Russia |
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Don't forget China, China is having a serious fuel shortage too.
Nothing to see here folks, move along, go to the mall and Starbucks, nothing to see here. |
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dorlomin
Light Sweet Crude
Joined: Aug 05, 2007
Posts: 1061
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| Posted: Tue Nov 13, 2007 11:09 am Post subject: Re: Fuel shortages in Russia |
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| Export land model not quite working in Russia today. |
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DantesPeak
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Joined: Oct 23, 2004
Posts: 5882
Location: New Jersey
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| Posted: Tue Nov 13, 2007 11:33 am Post subject: Re: Fuel shortages in Russia |
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The specific shortages around the world so far largely stem from some local miscalculation as to how high oil prices could go, and to a lesser extent because refinery profits have dropped fairly low (or negative in Russia and China).
Perhaps low refinery profits in the US are also a symptom of market forces, as consumers lose the ability to buy oil products.
This goes back to the theory of ‘demand destruction’ limiting oil demand by higher prices, except in this case formal and informal price controls have lead to shortages which also reduce demand. In other words, demand can be cut by either artificial shortages or high prices.
The IEA report today discussing a drop in fourth quarter demand also indirectly supports the demand destruction theory that oil and petrol products are being allocated to available supplies. When the IEA is discussing a drop in demand it is the flip side of supplies not being available.
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cube
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Joined: Mar 12, 2005
Posts: 3561
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| Posted: Tue Nov 13, 2007 8:44 pm Post subject: Re: Fuel shortages in Russia |
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| Eli wrote: | Don't forget China, China is having a serious fuel shortage too.
Nothing to see here folks, move along, go to the mall and Starbucks, nothing to see here. |
Is it my imagination or do ALL of these fuel shortages seem to stem from government "price controls"? |
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Eli
Fusion
Joined: Jun 18, 2005
Posts: 3886
Location: In a van down by the river
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| Posted: Tue Nov 13, 2007 9:12 pm Post subject: Re: Fuel shortages in Russia |
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| I don't think it is that simple especially in China, the companies there are saying that they are going to forestall maintenance to try and produce more fuel. Price controls are playing apart but so is demand. |
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Tyler_JC
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Joined: Sep 25, 2004
Posts: 4526
Location: Boston, MA
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| Posted: Tue Nov 13, 2007 10:05 pm Post subject: Re: Fuel shortages in Russia |
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| cube wrote: | | Eli wrote: | Don't forget China, China is having a serious fuel shortage too.
Nothing to see here folks, move along, go to the mall and Starbucks, nothing to see here. |
Is it my imagination or do ALL of these fuel shortages seem to stem from government "price controls"? |
It's not your imagination.
Unless people agree to the price controls (and they rarely do), you will have shortages.
It's not a theory, it's a law that's been proven time and time again.
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