Crude and Natural Gas Daily Information...

[frawin]

Higher Tanker Rates are a big portion of the rising costs of Crude Oil.

http://www.bloomberg.com/news/2011-03-09/oil-tanker-rates-doubling-on-lower-speeds-libya-uprising-freight-markets.html

[larryJ]

About three days ago, I filled up at my local Chevron station paying $3.85 a gallon for regular.  Last night on my way to get some tasty In-N-Out cheeseburgers, I passed that same station where the sign said ----$3.93.  Ouch.

Larryj

[frawin]

Larry, our neighborhood station is $3.29 for regular.

[frawin]

Product inventories had a bigger than expected drop last week.


Summary of Weekly Petroleum Data for the Week Ending March 4, 2011
U.S. crude oil refinery inputs averaged 13.9 million barrels per day during the week ending March 4, 145 thousand barrels per day above the previous week's average. Refineries operated at 82.0 percent of their operable capacity last week. Gasoline production decreased last week, averaging about 9.0 million barrels per day. Distillate fuel production decreased last week, averaging about 4.1 million barrels per day.
U.S. crude oil imports averaged 8.3 million barrels per day last week, up by 290 thousand barrels per day from the previous week. Over the last four weeks, crude oil imports have averaged about 8.2 million barrels per day, 669 thousand barrels per day below the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 761 thousand barrels per day. Distillate fuel imports averaged 252 thousand barrels per day last week.
U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 2.5 million barrels from the previous week. At 348.9 million barrels, U.S. crude oil inventories are above the upper limit of the average range for this time of year. Total motor gasoline inventories decreased by 5.5 million barrels last week and are above the upper limit of the average range. Both finished gasoline inventories and blending components inventories decreased last week. Distillate fuel inventories decreased by 4.0 million barrels and are above the upper limit of the average range for this time of year. Propane/propylene inventories decreased by 1.4 million barrels last week and are below the lower limit of the average range. Total commercial petroleum inventories decreased by 6.3 million barrels last week.
Total products supplied over the last four-week period has averaged about 19.5 million barrels per day, up by 0.6 percent compared to the similar period last year. Over the last four weeks, motor gasoline product supplied has averaged about 9.1 million barrels per day, up by 2.3 percent from the same period last year. Distillate fuel product supplied has averaged nearly 3.9 million barrels per day over the last four weeks, up by 4.1 percent from the same period last year. Jet fuel product supplied is 6.6 percent higher over the last four weeks compared to the same four-week period last year.

[larryJ]

There are many reasons for the high prices.  We have several refineries in the LA area which eliminates transportation costs somewhat.  But, we will changing over to the reformulated gas come summertime which is more expensive.  SoCal is known as the car capital of the world meaning that if you don't have a car, you are grounded.  Millions of people travel the roads daily driving an average of 20 miles one way to get to work.  The oil companies are aware of the market potential and take full advantage of it because they know that people are just going to have to buy gas.  60 years ago, LA had a terrific trolley car, called the Red Car, system that you could ride anywhere.  However, the city leaders and the automotive industry conspired to sell more cars.  So the Red Cars disappeared which was too bad.  Added to that was the bus companies that wanted the customers which helped elimanate the Red Car.  Now the state and the county are grasping desparately for funds to complete and enhance a rail system which is heavily used now.  This rail system uses some existing railroad tracks and are building new ones.  At any rate, until a alternative fuel is made efficient and cheap, we have to pay mightily for the priviledge of driving our over-priced vehicles to get to work so we can earn enough money to pay that gas credit card bill each month.

Larryj

[frawin]

I just came by Walmart and their gas price was $3.22 for regular. Larry What I understand that makes your Gasoline/Diesel so high is taxes and enviromental, anti pollution, processing  requirements at the refineries.

[frawin]

Crude settled down today:
April, $104.380, down $0.645
May, $105.610, down $0.340
June, $106.30, down $0.175

[W. Gray]

There is a subplot in the cartoon movie "Who Framed Roger Rabbit" about the elimination of the Red Car line via a secret conspiracy called Cloverleaf.

[frawin]

Crude is trading  down this morning:
April, $103.35, down $1.025
May, $104.65, down $0.95
June, $105.15, down$1.15

[frawin]

Front Month, April crude is trading at $101.425, down $2.95.