Comments on: Ike Forces Shutdown of 20% of US Refineries; $4 Gas May Result http://www.nakedcapitalism.com/2008/09/ike-forces-shutdown-of-20-of-us.html Sun, 22 Nov 2009 07:56:24 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: mxq http://www.nakedcapitalism.com/2008/09/ike-forces-shutdown-of-20-of-us.html#comment-15201 mxq Sun, 14 Sep 2008 23:06:00 +0000 http://www.nakedcapitalism.com/2008/09/ike-forces-shutdown-of-20-of-us-refineries-4-gas-may-result/#comment-15201 Just fyi, <a HREF="http://blogs.opisnet.com/archive/2008/09/14/ike-aftermath-supply-and-not-price-may-haunt-autumn-fuel-markets.aspx" REL="nofollow">Tom Kloza</a> has a pretty good analysis of the refinery capacity/gasoline price dynamic.<br/><br/>He also reiterates that refinery shutdowns mean that nobody is refining crude, which means crude supplies begin building and prices should fall (yet, cnbc anchors are perpetually aghast that oil is trading down during hurricane season...but it makes sense as, like the scarecrow in the wizardof oz, they too perpetually long for brains) Just fyi, Tom Kloza has a pretty good analysis of the refinery capacity/gasoline price dynamic.

He also reiterates that refinery shutdowns mean that nobody is refining crude, which means crude supplies begin building and prices should fall (yet, cnbc anchors are perpetually aghast that oil is trading down during hurricane season…but it makes sense as, like the scarecrow in the wizardof oz, they too perpetually long for brains)

]]> By: Jonathan Bernstein http://www.nakedcapitalism.com/2008/09/ike-forces-shutdown-of-20-of-us.html#comment-15106 Jonathan Bernstein Sun, 14 Sep 2008 17:16:00 +0000 http://www.nakedcapitalism.com/2008/09/ike-forces-shutdown-of-20-of-us-refineries-4-gas-may-result/#comment-15106 From the Bloomberg article you referenced:<br/><br/> "`We expect to see constrained supplies of refined products,'' he said. ``The administration will utilize every tool at our disposal to lessen the likelihood of limited fuel supplies,'' including tapping the Strategic Petroleum Reserve."<br/><br/>This is too silly for words. If Gulf Coast refining capacity is almost completely shut in, how would additional crude from the Strategic Petroleum Reserve alleviate a shortage of refined products? Just what are we supposed to do with the crude? Transship it to another country for refining over there and ship the product back here? Just asking. From the Bloomberg article you referenced:

“`We expect to see constrained supplies of refined products,” he said. “The administration will utilize every tool at our disposal to lessen the likelihood of limited fuel supplies,” including tapping the Strategic Petroleum Reserve.”

This is too silly for words. If Gulf Coast refining capacity is almost completely shut in, how would additional crude from the Strategic Petroleum Reserve alleviate a shortage of refined products? Just what are we supposed to do with the crude? Transship it to another country for refining over there and ship the product back here? Just asking.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/ike-forces-shutdown-of-20-of-us.html#comment-15084 Anonymous Sun, 14 Sep 2008 15:49:00 +0000 http://www.nakedcapitalism.com/2008/09/ike-forces-shutdown-of-20-of-us-refineries-4-gas-may-result/#comment-15084 We've already got +$4 a gallon gas here in S.E. Mich ($4.11- $4.22 yesterday). No 'prediction' needed. We’ve already got +$4 a gallon gas here in S.E. Mich ($4.11- $4.22 yesterday). No ‘prediction’ needed.

]]> By: bclem http://www.nakedcapitalism.com/2008/09/ike-forces-shutdown-of-20-of-us.html#comment-15070 bclem Sun, 14 Sep 2008 14:44:00 +0000 http://www.nakedcapitalism.com/2008/09/ike-forces-shutdown-of-20-of-us-refineries-4-gas-may-result/#comment-15070 Get used to it? It's already happened: gas jumped (depending on exactly where you live) between $.50 and $1.00 a gallon on Friday in Arkansas, Louisiana, and east Texas. Some stations were out as well. Get used to it? It’s already happened: gas jumped (depending on exactly where you live) between $.50 and $1.00 a gallon on Friday in Arkansas, Louisiana, and east Texas. Some stations were out as well.

]]> By: Richard Kline http://www.nakedcapitalism.com/2008/09/ike-forces-shutdown-of-20-of-us.html#comment-15046 Richard Kline Sun, 14 Sep 2008 06:03:00 +0000 http://www.nakedcapitalism.com/2008/09/ike-forces-shutdown-of-20-of-us-refineries-4-gas-may-result/#comment-15046 I *yike* Ike. I *yike* Ike.

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