The En-Pro Blog

Let’s dispense with the latest U.S. inventory report which, as this recession drags on, is becoming as intriguing as the Olympic gold medal round in ice fishing.

Inventories of all three key commodities are above the five year average with demand negative for all but jet fuel. Refinery runs remain below 80% and this at a time when they will start their annual spring maintenance.

We could actually see runs at below 70% in the next six weeks which, will of course, as usual, jack up prices in April and May. Those tankers that have spent months bobbing off shore loaded with crude and distillates have finally said enough is enough and have started delivery, which somewhat explains the increase in crude inventories and a tripling of imports of distillates.

The recent jump in gasoline prices is a stretch in logic and a good example of how far the speculators will go to justify the situation we find ourselves in; whereby the futures prices of gasoline are higher than heating oil in the dead of winter.

What about imports of gasoline from Europe? And what has the latest shut down of Total, in France done to inventory levels?

By: Roger McKnight, Senior Petroleum Advisor

Find out in this week’s Energy Report. Sign up by sending your email to info@en-pro.com.