Friday, May 25, 2007

The real OPEC

The Wall Street Journal's oil market roundup (subs. req'd) is too kind to say what appears to be going on --

New York crude oil futures slumped to a one-week low as more refinery problems indicated there will be less demand for crude from a key U.S. delivery point. Gasoline futures rallied on the problems.

Valero Energy Corp. shut a gasoline production unit at its McKee refinery in Sunray, Texas, meaning gasoline production will fall by 30,000 barrels a day for two weeks ...A series of unplanned operational problems and prolonged scheduled maintenance on refineries amid strong demand have depleted gasoline inventories and caused pump prices to rise to record highs around the country ... "All these refinery problems just keep occurring," said Tony Rosado of IAG Energy Brokers in Fort Lauderdale, Fla.


Yes indeed. It's so odd that refineries would have strange accidents when demand for petrol is high. No word yet on whether the maintenance crews were suddenly granted a few extra weeks annual leave.

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