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To: diana g who wrote (27975)	8/19/1998 8:21:00 AM
From: tdl4138	Respond to of 95453

Diana.. You just had to do it...didn't you.. Couldn't just sit back and wait... Everytime someone calls the bottom...the next day we can all look up to see it. Now you've done it again. Oh well. I just hope you're right. I dare not ask Slider for his opinion... I don't have all day to read his answer..<g> Maybe...you're right. Dave

To: diana g who wrote (27975)	8/19/1998 1:19:00 PM
From: diana g	Read Replies (1) \| Respond to of 95453

Subject: NOESIS Earlybird Report Date: Wed, 19 Aug 1998 08:58:10 -0700 From: George <gclemen@calweb.com> Organization: NOESIS To: UPDATE NOESIS <update@oil-gasoline.com> Refineries held the line and operations were pretty steady last week. Inventories remained about the same across the board. It appears that they are struggling with how to make enough gasoline during late August, and the problem may continue into the fall. In fact, we could see shortages of gasoline this fall. Here is the reason: The distillate tanks are full. There is no place to put more distillate. When you refine crude oil, you must make some amount of distillate. There is no option to make just one product, such as gasoline. Thus, when there is no storage space for distillate fuel, refiners cannot run the refinery at a level beyond the exact level of demand for distillate. In August, that demand is pretty low. Conversely, in August, the demand for gasoline is high. The refiner's problem is that he cannot make lots of gasoline without making lots of distillate. . . . The immediate solution is to reduce refining rates (less input of crude oil) and increase purchases of imported gasoline. (Alternatively, the U.S. could start exporting distillate -- if there is a demand on the international market -- this has never happened before, but I suppose it could happen). Imports of gasoline jumped last week from 396 to 715 thousand barrels per day. Check the NOESIS web site at oil-gasoline for a more complete analysis on Monday. -- George