Big Dog's Boom Boom Room Message Board

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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: schrodingers_cat who wrote (49765)	9/23/2005 12:19:46 AM
From: schrodingers_cat	Read Replies (3) of 206110

The high levels of gasoline stocks and production are odd. Refinery inputs are down, but gasoline production is holding up Two things seem to be happening. One is that gasoline demand is down about 6%. It shows what a wonderful system a free market economy is. High prices are forcing necessary conservation. The other thing is that some extra supply of gasoline is coming from somewhere. I think this may be due to the decision to suspend the environmental restrictions on gasoline. This would allow refiners to blend in feedstocks which would not normally be suitable. I think that butanes and naphthas which would normally go to petrochemicals are being put into gasoline instead. This might produce some higher plastics prices somewhere down the road.

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