Quote:
Originally Posted by sammyg2
Today the wholesale padd 5 price for CARB unleaded regular is $1.42
The price of gas has been falling like a rock, fortunately for refiners the price if crude has been falling slightly faster and is a leading indicator, so the refining margins had been useasonably good. Right up until last week.
Gas is a give-away right now, loosing money on every gallon. Jet and diesel remain relatively strong.
I'll be watching closely to see how and when it settles and when it starts it's way back up.
Instability is supposed to be good for the industry but I don't like it.
Saudi won't be able to afford keeping the price down for long.
I figure OPEC will collapse next fall.
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Crude prices are still below $50/bbl, but carb B wholesale spot price has jumped from a low of $1.29 in January, to $2.43 today.
Why the huge jump?
Two things:
exxonmobil's FCC blew up and will be down for quite a while. That unit produces allot of gasoline.
The cananananandian running the united steel worker's union went for a total power play and called a national strike. It's cut production on several plants and shut one refinery in the bay area down completely.
That along with as few others performing manditory maintnenance, has cut the gasoline supply to the point where we gotta import it. That makes it really expensive.