BoatBanter.com - View Single Post - Unwanted diesel and jet fuel cargoes are backing up outside Europe's ports

Keyser Söze

On 10/29/15 10:34 AM, wrote:
On Thu, 29 Oct 2015 10:15:48 -0400, Keyser Söze
wrote:

On 10/29/15 10:11 AM, wrote:
On Thu, 29 Oct 2015 09:44:46 -0400,
wrote:

It appears that the world is awash in more petro distillates than it
can consume or store. Ships in transit have become the storage of
last resort and that can't last forever. This will continue to
translate into lower prices at the pump but there is only so much
elasticity in demand as prices come down. Eventually the oil
producers will have to decommission some of their wells or pump less
agressively.

http://www.reuters.com/article/2015/10/26/oil-diesel-glut-idUSL8N12N36520151026

There is an interesting effect where diesel prices come down faster
than gasoline since diesel fuel gets produced as a byproduct of
gasoline distillation, but the demand for diesel increases more slowly
as prices come down. That creates a temporary production imbalance
and lower prices for diesel.

I have $3.599 (reg u/l) by labor day in the pool.

Don't forget the "annual" gouge price increases for Memorial Day and
July 4th Weekends.

I think this may be a bit more strategic. The saudis are selling oil
at lower than their production cost and I doubt it is out of the
kindness in their heart.

How would we possibly know what the Saudi's "production costs" are,
since they own their own oil and use cheap imported labor for the real
work in their country? Plus, they have strong political reasons at the
moment to keep the prices low. Oil pricing is just another corporate sham.