The EIA's This Week In Petroleum, released today, shows that gasoline inventories finally increased last week, after falling for 12 straight weeks. Demand was also softer than last year, suggesting that prices may have peaked in the short run. The EIA predicts that prices will stay close to $3/gallon for most of the summer, assuming no interruptions in crude availability (OPEC issues) or refinery infrastructure (hurricanes).
Hurricane season begins June 1st, so it's wait and see.
Showing posts with label inventory. Show all posts
Showing posts with label inventory. Show all posts
Wednesday, May 09, 2007
Wednesday, May 02, 2007
Update on gas inventory and prices
I blogged recently about $4 per gallon gas and the evidence for it keeps piling up. Robert Rapier investigates the U.S. weekly petroleum report and he's been hopeful that gasoline inventories would turn around in recent weeks to build up for the summer season (and help moderate prices). It hasn't happened.
1. It's a supply problem. Refiners have simply not kept pace with gasoline demand as they've been switching to summer gas formulations.
2. It's not an oil shortage, it's a gasoline shortage. Oil stocks keep rising.
3. Demand continues to surge up despite already higher prices.
In other words, get your checkbook ready - prices are going up (price chart courtesy of GasBuddy.com):
On a days of supply basis, this week's inventory number is the lowest we have ever seen in the spring, prior to peak summer driving season (emphasis mine).Summary of the price pressure:
1. It's a supply problem. Refiners have simply not kept pace with gasoline demand as they've been switching to summer gas formulations.
2. It's not an oil shortage, it's a gasoline shortage. Oil stocks keep rising.
3. Demand continues to surge up despite already higher prices.
In other words, get your checkbook ready - prices are going up (price chart courtesy of GasBuddy.com):
Wednesday, April 25, 2007
Ready for $4 a gallon? This summer?
A daily read for the energy-interested, the R-squared Energy Blog has something for everyone today: your gas prices are likely to jump - a lot.
Analyzing the weekly petroleum report from the Energy Information Administration, Mr Rapier notes that in 99.2% of weeks going back to 1991, we've had larger gasoline inventories (as measured by # of days supply). Typically, refineries kick up production to prepare, producing more gasoline to help meet peak demand season (summer). This spring, they haven't been able to keep pace, and gasoline inventories missed all expectations by falling this week, by several million gallons.
Demand steady, supply down. Get ready.
Analyzing the weekly petroleum report from the Energy Information Administration, Mr Rapier notes that in 99.2% of weeks going back to 1991, we've had larger gasoline inventories (as measured by # of days supply). Typically, refineries kick up production to prepare, producing more gasoline to help meet peak demand season (summer). This spring, they haven't been able to keep pace, and gasoline inventories missed all expectations by falling this week, by several million gallons.
Demand steady, supply down. Get ready.
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