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To: TexasCajun


Diesel has jumped on expectations of demand for heating oil (which is somehow related to diesel, don't ask me how). As for gasoline, we are coming out of the peak gas usage season (the summer), so we'd expect gas prices to fall.

The problem isn't on the demand side, it's that traders are worried about the supply side, so they buy up heating oil contracts now so they'll have the heating oil when people need it in december. ANWR would have directly address supply on two fronts: by providing placing a large reserve on the market, and by creating a stable flow of oil not subject to the political insanity of most oil producing countries.


13 posted on 10/12/2004 10:25:55 AM PDT by Without Barbarians
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To: Without Barbarians
Someone else told me heating oil production cut into diesel production. Makes sense, I guess.

One thing I can tell you, the oil companies are making obscene profits but rig rates, onshore and offshore have not followed. One would think there would be a rush to built new drilling rigs. Some new rigs are being built, not what you'd think with $50+ oil prices and oil prices over $30 for the past 3 yrs.

15 posted on 10/12/2004 10:35:56 AM PDT by TexasCajun
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