U.S. report: Fuel markets 'significantly impacted' by refinery shutdown

[ALS]

The plant along the Schuylkill River represents 24 percent of the refining capacity in the Northeast.

Andrew Maykuth - PHILLY - Febuary 28, 2012

The U.S. Energy Department on Monday said fuel markets in the Northeast "could be significantly impacted" if Sunoco closes its Philadelphia refinery in June, leading to tight supplies and price spikes is some areas.

The report by the U.S. Energy Information Administration said that supplies of ultra-low sulfur diesel would be most affected by refinery shutdowns and transportation constraints.

"If the Sunoco Philadelphia refinery closes, price impacts are highly uncertain," said the report. "If areas cannot be adequately supplied in the short term, prices can spike."

The Energy Department report adds a new element to an increasingly sharp national debate over rising fuel costs - a hot-button political issue in the presidential campaign.
... [Read More]

[herm]

There goes the price of diesel thru the roof.. a fascinating article.

So a diesel premium of a whole buck?

[ItsNotAboutTheMoney]

Originally Posted by herm

There goes the price of diesel thru the roof.. a fascinating article.

So a diesel premium of a whole buck?

At its peak in 2008 it was close to a $1 premium around here.

[EdwinTheMagnificent]

When gasoline peaked in 2008 , diesel was about the same price or a dime CHEAPER in the Chicago area.. Today , it is about 8% above gasoliine in my area. I'd buy a diesel , if they chose to offer some efficient models instead of the hot-rods they want to sell us now.

[thunderstruck]

It was the same price, 3.99, tonight at the Shell station at the corner of Touhy and Dee road.

[JusBringIt]

$3.92 for regular gas here...

Just checked gasbuddy.com and found the range was $3.87-$3.97 . How's that for being smack in the middle.

[xcel]

Hi All:

Late 2008 on a stop in Oklahoma on our way to the LA Auto Show...

That was painful for diesel drivers.

Wayne

[herm]

a very good article on the refinery mess..

http://www.ft.com/intl/cms/s/0/256f5...#axzz1rlQNLKMr

Sunoco petrol stations are a fixture of the US eastern seaboard, their blue-and-yellow awnings touting the brand’s status as official fuel of Nascar racing. But after July, none of the petrol they sell will actually be made by Sunoco.

The 126-year-old company’s decision to quit the refining business is the latest sign of the tumult in downstream fuel markets that is accompanying a global shift in oil use. As consumption flags in developed economies and grows in emerging markets, refineries are dying from Japan to Pennsylvania, the Sunoco home state where oil wells drilled in the 1850s begat the petroleum age.

Half the refining capacity on the populous US east coast is set to disappear. Sunoco has pulled the plug on two refineries already and warns that another in Philadelphia will close in July if no buyer steps forward. ConocoPhillips is trying to sell a refinery in Pennsylvania, idle since last year. On May 1, it will spin off its refining business. More than 3m barrels of daily refinery capacity have closed in western countries, since the financial crisis, says the International Energy Agency, the west’s oil watchdog. Emerging economies have meanwhile added 4.2m b/d in capacity, with another 1.8m b/d coming this year. “It’s really a tale of two markets,” says Toril Bosoni, IEA senior oil analyst. “You have very contrasting pictures for economic growth and demand, and refining is reflecting what’s going on elsewhere.”

[ALS]

I posted this in another thread but there was a news story on Tuesday night that pointed out that Pittsburgh drivers are paying 40 cents more for gas over people living in Steubenville Ohio 30 miles west. The difference is we get the reformulated gas and it comes out of the Philadelphia refineries. Ohio doesn't have to have the custom blends and theirs comes out of Chicago.

[herm]

Sorry, did not see that particular FT story posted..