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To: grey_whiskers
Sure. Which terms?

Motor gasoline is gaining relative to crude because it had fallen a terrific amount, again, relative to crude. It had fallen so far, in fact, that refining margins for motor gasoline, aka ''the gas crack'', were negative; refiners were losing money on every barrel of gasoline produced for about 3 months, until sometime this past week.

Speculation has nothing whatever to do with the recent relative rise in motor gasoline. All the demand destruction is priced into the mkt by now, and the mkt is correcting, just as it always does when left alone.

The situation right now in the two front futures months of crude is an aberrant one involving excess supply at Cushing OK, and this odd situation too will correct over time...but nobody's quite ready to say how much time will be required. Meantime, expect the gas crack to return toward somewhere around historical norms, say $3-7/bbl, slowly this year. Probably be there by ''driving season''. Make no mistake, this will **not** be a straight-line process; the gas crack will bounce all over the place this year, but net-net it should be higher at the end of the year, bar another economic earthquake.

40 posted on 01/16/2009 8:15:56 AM PST by SAJ
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To: SAJ
Re: My post 29 this thread.

Thanks for the reply, I'll get to the terms tomorrow...

Cheers!

50 posted on 01/16/2009 9:31:46 PM PST by grey_whiskers (The opinions are solely those of the author and are subject to change without notice.)
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