Spreading "Peak Oil" Crack
We caught this Reuters release, and wondered if perhaps some other kind of "crack" is being spread around... read carefully.
Prices are still at levels unseen in real terms in a quarter of a century, powered by demand from the United States and the fast growing economies of India and China and a shortage of refineries to churn out gasoline and other fuels.
Analysts at PFC Energy saw signs of near-term support... as refiners have run hard, Japanese crude stocks have fallen to 30 year lows.
"Fundamentally the market is not strong, but Iranian tensions with the West continue to keep the market on edge," said Michael Coleman, managing director of Singapore-based hedge fund Aisling Analytics.
Oil fell on Monday after a week-long drop precipitated by ample fuel stocks in top consumer the United States, and as U.S. refiners, for the first time in a year, are staring at a loss when making gasoline.
"The current weakness in front month gasoline crack spreads is unprecedented and is sending a very strong message to refiners about the need to sharply cut production," said Kevin Norrish, an analyst at Barclays Capital in London.
The differential between gasoline and crude oil futures in the United States tumbled to minus $1.13 on Monday, the lowest since October 2003.
Ok, so in order...
Prices are at previously unseen levels.
Yet, fundamentally the market is not strong.
There is a shortage of refineries.
Yet, US refiners are losing money making gasoline.
Despite refiners running hard, the Japanese inventory is at a 30 year low. Yet, refiners need to cut production.
Interesting "peak oil" crack being spread around for the lemmings to smoke. Yes indeed, a saying comes to mind, "white man speak with forked tongue".
$130 Oil Justified? No Way
Oil Price Redux
OIL: Demand, Production and Speculation
Peak Oil - The Myth, The Legend, The Fraud
Spreading "Peak Oil" Crack
"Peking" Oil, the Saudis and China
Peak Oil? Not!
Peak Oil? Not! Part Deux
Peak Oil? Not! - Update
Peak Oil Redux Part I
Peak Oil Redux - Part II
Peak Oil Redux Part III
Peak Oil Redux Part IV
Peak Oil Redux Part V
Peak Oil Redux Part VI
Peak Oil Redux Part VII
Peak Oil Redux Part VIII
The Blame for $135 a Barrel Oil
Blame it on Markman's Myopia or The Day They Burned Ol' Dixie Down - A "Peak Oil" Commentary
Another Peak Oil Cufuffle Series
Prices are still at levels unseen in real terms in a quarter of a century, powered by demand from the United States and the fast growing economies of India and China and a shortage of refineries to churn out gasoline and other fuels.
Analysts at PFC Energy saw signs of near-term support... as refiners have run hard, Japanese crude stocks have fallen to 30 year lows.
"Fundamentally the market is not strong, but Iranian tensions with the West continue to keep the market on edge," said Michael Coleman, managing director of Singapore-based hedge fund Aisling Analytics.
Oil fell on Monday after a week-long drop precipitated by ample fuel stocks in top consumer the United States, and as U.S. refiners, for the first time in a year, are staring at a loss when making gasoline.
"The current weakness in front month gasoline crack spreads is unprecedented and is sending a very strong message to refiners about the need to sharply cut production," said Kevin Norrish, an analyst at Barclays Capital in London.
The differential between gasoline and crude oil futures in the United States tumbled to minus $1.13 on Monday, the lowest since October 2003.
Ok, so in order...
Prices are at previously unseen levels.
Yet, fundamentally the market is not strong.
There is a shortage of refineries.
Yet, US refiners are losing money making gasoline.
Despite refiners running hard, the Japanese inventory is at a 30 year low. Yet, refiners need to cut production.
Interesting "peak oil" crack being spread around for the lemmings to smoke. Yes indeed, a saying comes to mind, "white man speak with forked tongue".
$130 Oil Justified? No Way
Oil Price Redux
OIL: Demand, Production and Speculation
Peak Oil - The Myth, The Legend, The Fraud
Spreading "Peak Oil" Crack
"Peking" Oil, the Saudis and China
Peak Oil? Not!
Peak Oil? Not! Part Deux
Peak Oil? Not! - Update
Peak Oil Redux Part I
Peak Oil Redux - Part II
Peak Oil Redux Part III
Peak Oil Redux Part IV
Peak Oil Redux Part V
Peak Oil Redux Part VI
Peak Oil Redux Part VII
Peak Oil Redux Part VIII
The Blame for $135 a Barrel Oil
Blame it on Markman's Myopia or The Day They Burned Ol' Dixie Down - A "Peak Oil" Commentary
Another Peak Oil Cufuffle Series
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