Joined: Oct 23, 2004 Posts: 5897 Location: New Jersey
Posted: Sun May 18, 2008 6:58 pm Post subject: Re: Record Diesel engine fuels price thread.
Diesel records are being set on a daily basis around the world, and our heads are spinning.
Still demand is holding up strongly throughout the world, and there are still supply problems (see below). The outlook is that we have some more weeks ahead for new record retail prices here in the US.
I just wonder what's going to happen after that. Remove state and federal taxes? Give truckers subsidies? Otherwise many things will not be getting from here to there, as a great amount of truckers will face bankruptcy.
Quote:
Total Shuts Dutch Refinery Unit, Cuts Diesel Output (Update3)
By Nidaa Bakhsh
May 16 (Bloomberg) -- Total SA, Europe's third-largest oil company, partially shut its Vlissingen refinery in the Netherlands to carry out work in a fuel-producing unit, cutting diesel output at a time of record prices.
Work on the so-called hydrocracker began May 11 and is expected to last until early June, the company said in a statement on its Dutch Web site. Burkhard Reuss, a Total spokesman speaking by phone from Paris, said Total is able to meet customer needs because the company built up inventories ahead of the shutdown.
The hydrocracker is the third in Europe to be idled, adding to the continent's already supply-constrained diesel market, which is relying on imports from the U.S. to meet demand.
Ineos Group Holdings Plc's unit at its 200,000 barrel-a-day Grangemouth refinery in Scotland was damaged by fire as it resumed operations after a strike that closed the complex in late April. Neste Oil Oyj is expecting to resume diesel production from its 196,000-barrel-a-day Porvoo refinery in Finland in early June after a fire in a heat exchanger early last month.
Spot diesel prices for immediate loading in the main Amsterdam-Rotterdam-Antwerp hub rose to a record $1,260.75 a ton at 4:35 p.m. London time today, according to data compiled by Bloomberg. The contract has risen 16 percent since the beginning of May.
The Vlissingen refinery has an oil-processing capacity of 9.5 million metric tons a year, according to Total's Web site. That's about 190,000 barrels a day, according to Bloomberg calculations. The refinery is jointly run with U.S.-based Dow Chemical Co.
Joined: Oct 23, 2004 Posts: 5897 Location: New Jersey
Posted: Sun May 18, 2008 7:46 pm Post subject: Re: Record Diesel engine fuels price thread.
Here's more information on where diesel demand is coming from:
Quote:
Diesel Prices Soar Ahead of Olympics
China Hoards Tons Amid Rebuilding;
U.S. Fills a Need
By ANNA RAFF
May 19, 2008
China is hoarding diesel and other distillates in case the country needs to rely on its backup generators to smooth out hiccups in its unreliable power grid.
PetroChina Co., the publicly traded arm of government-owned China National Petroleum Corp., "has not only made a huge purchase of diesel for June but has also suspended exports of oil productions to meet domestic demand, exacerbated by the earthquake and, of course, the coming Olympics," said Mike Fitzpatrick, an analyst at MF Global in New York.
The United Arab Emirates and Indonesia have said they will boost diesel imports because of local supply problems.
In Europe, where a large share of vehicles run on diesel, scheduled refinery maintenance, unexpected production outages, late-winter cold and a change in fuel specifications have strained distillate inventories, boosting prices enough to attract imports from the U.S.
"The U.S. is now acting as a swing supplier in Europe," said Harry Tchilinguirian, senior oil market analyst at BNP Paribas in London.
Traditionally, Europe would import much of its distillate requirements from Russia, but stricter regulations on sulfur content make products such as ultralow-sulfur diesel, or ULSD, from the U.S. more attractive.
South America is relying on the U.S. for heating oil this winter, as the continent looks for alternatives to unstable natural-gas production, said Andrew Reed, an oil-market analyst with Energy Security Analysis Inc., a consultancy based in Wakefield, Mass.
Joined: Jun 18, 2004 Posts: 762 Location: Western North Carolina
Posted: Mon May 19, 2008 1:40 pm Post subject: Re: Record Diesel engine fuels price thread.
$4.45 for diesel and holding here.
The filling station that I use most, has just installed a digital price sign in lieu of the old-fashioned type like the one pictured above, from Greenwich CT.
That is a bad sign... pardon the pun. It also appears to have two spots to the left of the decimal point. Very bad sign.
Posted: Thu May 22, 2008 8:17 am Post subject: Re: Record Diesel engine fuels price thread.
Front month heating oil trading north of $4 for the first time this morning. Actually $4.015.
That was fast. _________________ At 1% annual growth, human bodies will incorporate every gram in the observable universe in approximately 10,170 years.
Joined: Dec 02, 2005 Posts: 6416 Location: Oil-addicted Southern Californucopia
Posted: Thu May 22, 2008 12:15 pm Post subject: Re: Record Diesel engine fuels price thread.
Costa Mesa, California, this morning.
This is the first time I've seen anything over five bucks. _________________ "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
Posted: Fri May 23, 2008 9:37 am Post subject: Re: Record Diesel engine fuels price thread.
4.89 is Kansas City area. A bit under that depending where you go of course.
I filled up 1 or 2 days ago at 4.69. _________________ "Battle not with monsters, lest ye become a monster, and if you gaze into the
Abyss, the Abyss gazes also into you."
Ammo at a gunfight is like bubblegum in grade school: If you havent brought enough for everyone, you're in trouble
Posted: Fri May 23, 2008 12:15 pm Post subject: Re: Record Diesel engine fuels price thread.
The EU is sitting pretty well right now. They're barrel/gdp dollar is very low compared to us. Alot of those countries do not need to increase oil supply to grow GDP (see Tertzakian.) China, India and the US rely heavily on increased consumption of oil to fuel GDP growth.
It will not take until next year, the super spike is going to be clearly manifest in just a few months (IMHO.) $225 and then a drop off to band trading with a mean in the $150-$160 range. At which point the American economy will be shedding jobs like crazy. Demand destrcution will either over correct and leave us less able to mitigate peak oil or it will chase supply as it slides down the other side of the peak. My guess is the second, that people will be reluctant to let go of the privileges of oil and so demand destruction will lag supply shortfalls all the way down. This is almost guaranteed if supply falls quick enough.
And yet with all this going in the American consumer is still not ready to wake up and make the necessary changes to save their own lives.
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