Posted on 01/25/2023 7:23:55 AM PST by Kaiser8408a
U.S. oil refining margins, also known as the 3-2-1 crack spread, jumped to a three-month high on Tuesday — and that’s an indication the country faces an ongoing product shortage that might lead to higher gasoline and diesel prices at the pump.
The 3-2-1 crack spread is a great indicator to gauge fuel product tightness. High spreads indicate gasoline, diesel, jet fuel, and other petroleum products are in short supply, while low spreads mean an abundance of supply. Spread direction is also important — if rising, it would mean fuel inventories are declining.
The simple calculation of refining margins is for every three barrels of crude oil the refinery processes — it makes two barrels of gasoline and one barrel of distillates like diesel and jet fuel.
On Tuesday, the crack spread hit a three-month high of $42 a barrel. For some context, the five-year January average is $15.56.
Reuters pointed out that refinery outages exacerbate fuel supply tightness.
A diesel producing unit at PBF Energy’s (PBF.N) Chalmette, Louisiana, refinery was shut following a fire on Saturday. It could be out for at least a month. Exxon Mobil (XOM.N) said Monday it will perform planned maintenance on several units at its Baytown, Texas, petrochemical complex.
Perhaps the victory lap was a little premature?
Mission Accomplished 2.0?
Not really. US gasoline prices are UP 45% under Biden, diesel prices (the lifeblood of the shipping industry) are UP 77 under Clueless Joe and the Strategic Petroleum Reserve is DOWN -47% under China Joe.
(Excerpt) Read more at confoundedinterest.net ...
And the 2nd half of winter is setting in meaning energy $ will increase....just saying.
Gasoline price per gallon was up 40 cents virtually overnight, here western slope Colorado. Not talking about the rich folks convenience places, but regular discount sources.
His intentional actions have done one thing cripple the country aka Soros Agenda.
You got to admit, it was pretty slick the way the cranky, demented old white guy manipulated gas prices to make him and his RAT comrades “wildly popular” during the mid-term elections. The ignorant, free stuff loving voters fell for it.
As we prepare to send tanks to Ukraine.
Apparently these people are going for the Great GREAT Reset.
Same fearmongers said we’d be out of diesel by Thanksgiving.
Under my plan electricity prices will necessarily skyrocket. -- Obama
You think that was sumthin'? Hold my Boost! -- Brandon
What’s this mean for gas prices? Oil is back at $80 plus add in a gasoline shortage....does that mean $1 per gallon more at the pump? $5 more? 10 cents?
If we’re going from a $15 to a $46 dollar average, that seems significant.
Gas prices up 70 cents/gal here in the last week. Time to get the “I Did That!” Biden stickers out again and put them on the gas pumps.
They could give a rats ass about the rural folk.
It is all about themselves in and around the large cities and KooKOOfornia. CA is a state of insanity.
US Crude production is up 1.1M barrels/day since Biden took office.
Same here - 19.5%. Alabama Power Company.
Used 80 kWh less and bill up $155 for Dec/Jan bill.
When you see oil articles written with right wing political agenda, they are going to be filled with errors. When they are written with left wing agenda, you don’t see as many errors because the articles don’t get written. Left wing reporters hate oil so much they talk their managing editor into covering something else.
The most prominent in this one is saying a barrel of oil refines 2/3 gasoline and 1/3 distillates (which are diesel and kerosene (jet fuel). This is not how it works.
The constituent yield of a barrel of oil differs by oil field. And differs by the definition of “oil”, which has changed considerably since shale flow began. Shale “oil” tends to be light (as in Light Tight Oil). It is not diesel rich. Russian oil and Libyan oil are diesel rich. US shale oil is not.
This has not a huge problem because most US consumption is gasoline, but it is reality and it does affect what is available.
It’s not particularly dependent on refinery choice of what to output from the process. It is dependent on geology. And Permian Era geology does not care about politics.
US Crude production is up 1.1M barrels/day since Biden took office.
And down by 7000 thousand barrels an day since Biden took office.
One pipe line shut down work ended on the other ZERO gain 100% plus loss.
One pipe line shut down work ended on the other ZERO gain 100% plus loss.
Say what?
Got my power bill this morning. Cost per kWh (after removing fixed monthly fees) is up 19.5% compared to the January bill a year ago. NINETEEN POINT FIVE PERCENT!
WOW....that’s absurd
I have Alabama Power too. If you don't mind my asking, how do you calculate your true kWh rate?
I calculate mine like: kWh rate = [Total Bill in Dollars - Total Flat Rate (with taxes)] ÷ kWh pulled that month
So for me this month that's:
kWh rate = [$189.67 - $15.60] ÷ 1140kWh
kWh rate = $174.07 ÷ 1140kWh
kWh rate = 15.2692¢/kWh
In the January bill a year ago I calculated it as 12.7775¢/kWh (keep in mind back then the flat monthly fees was $15.86, not $15.60, because beginning with the July 2022 bill the reduced the natural disaster rider from 75¢ to 50¢ and I believe that part is also taxed at 4%).
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