Hoarding is exactly what the government is doing right now by filling the SPR, and frankly it's the best thing that could happen. It drives prices up. High prices encourage demand destruction. They also finance new well development. The hoarded oil gives us a buffer to fall back on once shortages become more prevalent. High prices are what we need in order to adapt to what's coming, and the sooner they happen, the better.
Wait a minute, acroding to the weekly update we are importing around .3 mbd of distillates and way back at the front of that thread we were in May 2007 importing around .3 mbd of distillates.
What has changed? _________________ Oxygen: - An intensely habit-forming accumulative toxic substance. As little
as one breath is known to produce a life-long addiction to the gas, which addiction invariably ends in death.--Isaac Asimov
Wait a minute, acroding to the weekly update we are importing around .3 mbd of distillates and way back at the front of that thread we were in May 2007 importing around .3 mbd of distillates.
What has changed?
Imports are falling:
Production is down:
Imports are up, although it's hard to know exactly how much, since the EIA doesn't appear to track this statistic very accurately on a weekly basis. However the final inventory report is supposed to be up to date, which should show the effect of exports since late February:
"The shortage of diesel supply means that backlog demand remains high," the agency said. "As long as there is adequate supply, China's oil demand is likely to increase substantially."
Reports on Friday state that US diesel demand remains strong, despite record high prices, due to strong export demand and seasonal agricultural buying.
Joined: Oct 23, 2004 Posts: 5167 Location: New Jersey
Posted: Tue Apr 15, 2008 11:19 am Post subject: Re: Record Diesel engine fuels price thread.
Global demand and shortages still pushing diesel prices higher:
Quote:
Oil, Gasoline Climb to Records as Investors Move to Commodities
By Mark Shenk
April 15 (Bloomberg) -- Crude oil and gasoline rose to records as investors purchased commodities because their returns have outpaced stocks, bonds and other financial instruments.
Chinese diesel demand was up 49 percent for March.
China, the world's second-largest energy consumer, increased diesel imports as state refiners China Petroleum & Chemical Corp. and PetroChina Co. bought more to ensure supplies for the spring planting season.
Chinese oil demand this year will rise 4.7 percent to 7.9 million barrels a day, the International Energy Agency said in a report on April 11.
Caltex Australia Has Diesel Shortage Due to Shutdown (Update2)
By Angela Macdonald-Smith
April 15 (Bloomberg) -- Caltex Australia Ltd., the nation's biggest oil refiner, said urgent, unplanned maintenance at a diesel unit in Queensland is causing a shortage of supplies.
The company is bringing in diesel from New South Wales state and from overseas to help meet demand, Sydney-based Caltex Australia said today in an e-mailed statement. The diesel hydrotreater was shut in early April for repairs after a leak was detected, said Alison Badger, a spokeswoman, without giving details.
Posted: Tue Apr 15, 2008 11:39 am Post subject: Re: Record Diesel engine fuels price thread.
$4.09 here in Dallas, up about a dime over the weekend. _________________ “I'm completely in favor of the separation of Church and State. My idea is that these two institutions screw us up enough on their own, so both of them together is certain death.” George Carlin
Joined: Sep 16, 2004 Posts: 4137 Location: Southwest WI
Posted: Tue Apr 15, 2008 11:43 am Post subject: Re: Record Diesel engine fuels price thread.
4.10 all around these parts, MN is a little cheaper. _________________ "Oil is going up because we use too much oil, and the capacity to replace reserves is dwindling"
-President Bush 11/07/07
Joined: Oct 23, 2004 Posts: 5167 Location: New Jersey
Posted: Tue Apr 15, 2008 5:12 pm Post subject: Re: Record Diesel engine fuels price thread.
Quote:
Oil Surges to New Peak Near $114
By GREGORY MEYER
April 15, 2008 5:30 p.m.
China imported 1.66 million tons of diesel between January and March, the General Administration of Customs reported Tuesday, a seven-fold increase from the 230,000 tons imported in the same period last year.
WSJ
In addition, South Africa and Chile have increased diesel imports to help ease power shortages in their countries.
Joined: Feb 02, 2006 Posts: 284 Location: Denver, USA
Posted: Tue Apr 15, 2008 9:36 pm Post subject: Re: Record Diesel engine fuels price thread.
DantesPeak wrote:
Quote:
Oil Surges to New Peak Near $114
By GREGORY MEYER
April 15, 2008 5:30 p.m.
China imported 1.66 million tons of diesel between January and March, the General Administration of Customs reported Tuesday, a seven-fold increase from the 230,000 tons imported in the same period last year.
Wow! That kind of growth can't be sustainable... _________________ "It is certain that free societies would have no easy time in a future dark age. The rapid return to universal penury will be accomplished by violence and cruelties of a kind now forgotten." - Roberto Vacca, The Coming Dark Age
Joined: Oct 23, 2004 Posts: 5167 Location: New Jersey
Posted: Tue Apr 15, 2008 9:40 pm Post subject: Re: Record Diesel engine fuels price thread.
Mechler wrote:
DantesPeak wrote:
Quote:
Oil Surges to New Peak Near $114
By GREGORY MEYER
April 15, 2008 5:30 p.m.
China imported 1.66 million tons of diesel between January and March, the General Administration of Customs reported Tuesday, a seven-fold increase from the 230,000 tons imported in the same period last year.
Wow! That kind of growth can't be sustainable...
Mostly it is. I don't see any significant relief from high diesel prices in the US soon.
Quote:
PetroChina Increases May Diesel Imports by 50% (Update1)
By Sophie Tan
April 16 (Bloomberg) -- PetroChina International Co. bought 300,000 metric tons of diesel for delivery in May, 50 percent more than a month earlier, said a company official, who declined to be identified because of internal rules.
The company, also known as China National United Oil Corp., is a trading unit of PetroChina Co., the nation's biggest oil producer.
China will refund the 17 percent value-added tax on 1 million tons of diesel to be imported by PetroChina's parent China National Petroleum Corp. during April to June, the Ministry of Finance said yesterday.
Joined: Feb 02, 2006 Posts: 284 Location: Denver, USA
Posted: Tue Apr 15, 2008 9:48 pm Post subject: Re: Record Diesel engine fuels price thread.
DantesPeak wrote:
Mechler wrote:
DantesPeak wrote:
Quote:
Oil Surges to New Peak Near $114
By GREGORY MEYER
April 15, 2008 5:30 p.m.
China imported 1.66 million tons of diesel between January and March, the General Administration of Customs reported Tuesday, a seven-fold increase from the 230,000 tons imported in the same period last year.
Wow! That kind of growth can't be sustainable...
Mostly it is. I don't see any significant relief from high diesel prices in the US soon.
I mean sustainable for the long-term. You can't have 700% yearly growth too long without ramifications!
You're right about high prices being here to stay. _________________ "It is certain that free societies would have no easy time in a future dark age. The rapid return to universal penury will be accomplished by violence and cruelties of a kind now forgotten." - Roberto Vacca, The Coming Dark Age
Joined: Dec 02, 2005 Posts: 6217 Location: Oil-addicted Southern Californucopia
Posted: Fri Apr 18, 2008 10:22 pm Post subject: Re: Record Diesel engine fuels price thread.
I posted this in the gasoline thread. Might as well stick it here, too:
We'll see five bucks for diesel pretty soon, I'm afraid. _________________ "Thank you for attending the oil age. We're going to scrape what we can out of these tar pits in Alberta and then shut down the machines and turn out the lights. Goodnight." - seldom_seen
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