Posted on 10/27/2006 1:43:36 PM PDT by Red Badger
HOUSTON, Oct 27 (Reuters) - Wholesale California diesel prices jumped 7 cents on Friday on news ConocoPhillips (COP.N: Quote, Profile, Research) shut a hydrocracker at its 76,000 barrel per day refinery in Rodeo, California, traders said.
Diesel formulated to meet California's strict pollution rules traded in the Los Angeles wholesale market as high as 14 cents over December heating oil futures on the New York Mercantile Exchange, the traders said.
Early on Thursday, California diesel sold at 4.5 cents over December NYMEX heating oil. Late in the afternoon, California diesel sold at 7 cents over NYMEX heating oil. On Friday, it traded at 8.75 cents, 11.5 cents, 12.5 cents and 14 cents over the NYMEX, traders said.
The hydrocracker shutdown was planned so Conoco could overhaul the unit, which uses hydrogen to increase the amount of motor fuels refined from a barrel of crude oil, according to notices filed with public safety and pollution regulation agencies.
A Conoco spokeswoman declined to discuss operations at the Rodeo refinery, citing company policy.
Some dealers were surprised by the price jump for a planned event. Others said CARB diesel has been undervalued for several weeks, so the jump was less surprising.
Diesel Ping List
If you want on or off the DIESEL "KNOCK" LIST just FReepmail me........
--can't they all just drive over to the nearset Willie Nelson biodiesel station?
The price jump has more to do with the government regulations that have frangmented and partitioned the market than it has to do with a small loss in total national production.
Diesel is $0.40 higher than regular gas for one reason - I own a diesel pickup (I was also #17 in the draft lottery).
The price jump has more to do with the government regulations that have frangmented and partitioned the market.....
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Yes, music to the ears of Marixists...just vote them in and see what happens. And we thought they were bad before? Pray they don't get control.
Unfortunately, diesel ought to be cheaper.
It requires much less processing.
Diesel used to be cheaper. Why is it more now? Has demand increased while diesel pumps and tankers have not?
Because it is taxed at a higher rate and the new sulfur regulations upped it another $.08-$.10/gallon.
Gas/Diesel/Gasohol tax rates as of 1/1/06:
http://www.taxadmin.org/FTA/rate/motor_fl.html
Aha! That fits the history very well. Thanks.
And in some states it is taxed at a lower rate.
At $3.00 per gallon, it was a push.
Finding it and storing it is another problem, so is usage in cooler weather.
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