Unwanted diesel and jet fuel cargoes are backing up outside Europe's ports
 

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.

Unwanted diesel and jet fuel cargoes are backing up outside Europe's ports
 

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.

Unwanted diesel and jet fuel cargoes are backing up outsideEurope's ports
 

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.

Unwanted diesel and jet fuel cargoes are backing up outside Europe's ports
 

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.

Unwanted diesel and jet fuel cargoes are backing up outsideEurope's ports
 

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.

Unwanted diesel and jet fuel cargoes are backing up outside Europe's ports
 

On Thu, 29 Oct 2015 10:39:24 -0400, Keyser Söze
wrote:

Oil pricing is just another corporate sham.

===

Harry, self proclaimed expert on all things corporate, just emitted
another loud and smelly brain fart. Very predictable.

Unwanted diesel and jet fuel cargoes are backing up outsideEurope's ports
 

On Thu, 29 Oct 2015 10:15:48 -0400, Keyser Söze
wrote:
- show quoted text -
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.
.....

Probably using the same tactic the cartels pulled in the 80s to bust their world competitors, then raise it back

Unwanted diesel and jet fuel cargoes are backing upoutside Europe's ports
 

Tim wrote:
On Thu, 29 Oct 2015 10:15:48 -0400, Keyser Söze
wrote:
- show quoted text -
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.
....

Probably using the same tactic the cartels pulled in the 80s to bust
their world competitors, then raise it back


I doubt it is below their production cost. Their cost is very low. A lot
lower than our costs. They do not require pumps on the wells, and have 13"
casings. I think ours are 6". Lots of gas pressure forces out the oil.

Unwanted diesel and jet fuel cargoes are backing up outside Europe's ports
 

On Thu, 29 Oct 2015 09:33:42 -0700 (PDT), Tim
wrote:

On Thu, 29 Oct 2015 10:15:48 -0400, Keyser Söze
wrote:
- show quoted text -
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.
....

Probably using the same tactic the cartels pulled in the 80s to bust their world competitors, then raise it back

===

I don't think the Saudis have control of the market anymore. Obviously
they'd like to maintain market share and see some of the competition
go away but as soon as prices start to go back up, alternative sources
like shale oil and liquified natural gas become cost effective again.

Unwanted diesel and jet fuel cargoes are backing up outsideEurope's ports
 

On 10/29/15 12:40 PM, Califbill wrote:
Tim wrote:
On Thu, 29 Oct 2015 10:15:48 -0400, Keyser Söze
wrote:
- show quoted text -
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.
....

Probably using the same tactic the cartels pulled in the 80s to bust
their world competitors, then raise it back


I doubt it is below their production cost. Their cost is very low. A lot
lower than our costs. They do not require pumps on the wells, and have 13"
casings. I think ours are 6". Lots of gas pressure forces out the oil.


I agree, and, further, we don't really know what the Saudi production
costs are, even if they tell us what they think we should know about them.