Prices have posted a limited decline...on reports that the Nigerian rebel group, MEND, released three oil workers, who were being held as hostages. MEND claims it will not take hostages in the future, but it will continue attacks on oil infrastructure in their bid for independence for the oil-rich Niger Delta region. |
Prices in the coming weeks will remain extremely reactive to the various weather forecasts, especially the changes in the forward-looking six-10 day forecasts. |
Prices remain sensitive to the latest developments concerning the storm, |
Prior to its current path, we were looking at the worst-case scenario for the industry with the hurricane striking Houston, ... It saves us from the worst. |
Remember, the power outages are what bedeviled recovery efforts after Katrina, |
Remember, the power outages are what bedeviled recovery efforts after Katrina. |
Rita is set to knock off 26 percent off the U.S. refining capacity, which is going to push gasoline prices upwards of three and four dollars a gallon in the coming days. |
Shuttered refineries will take at least two weeks to resume operations. Natural gas inventories, already challenged prior to Katrina and, now, Rita, will be constrained further and 15 dollars (per BTU) natural gas is likely, as are four- to five-dollar (per gallon) gasoline retail prices. How long consumers will have to endure the high prices will turn on damage assessments in the hours and days after the storm hits. |
St. Croix is a major supplier of gasoline to the U.S.. There are already some worries about gasoline this summer. |
The attackers ended up hitting well short of any infrastructure. There was also a big step forward toward solving the Iranian nuclear crisis this weekend. As the waters calm the price of oil falls. |
The biggest disappointment is that oil is not getting out of the north which is supposed to be Kurdish-controlled. |
The biggest thing right now is statements attributable to Congressman Tauzin saying the [Strategic Petroleum Reserve] has been switched to flow mode, |
The calculus of perpetually higher prices assumes that nothing will change. |
The continuing rhetoric out of Iran over the weekend helps to keep it supported and poised to go higher. |
The EPA waiver was a big move, |