<DrumBeat: June 13, 2007The Oil DrumI've Been Encouraged Before...>

75 comments on Gasoline Prices Part II: Long-Term Factors

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rainsong on June 13, 2007 - 10:07am Permalink | Subthread | Comments top

The Whiting refinery is down, there was the Imperial refinery fire in Canada, and other problems as well.

With Iran stating it wanted to build five refineries in Asia in addition to other refinery projects planned for Asia it seems the higher consumption rate of some non-OECD countries will divert new crude supplies away from the US. Numerous currencies were strengthening compared to the dollar, thus oil was becoming more affordable for them. The preemptive war is taking its toll on America.

I have read rumors on the board that the refineries cannot get the type of crude they want. If this is true, you get builds in heavy sour and draw downs in light sweet. I cannot prove it.

Worldwide car sales seem to be outpacing supply thus we have $3.00 + gasoline in the shoulder season without a hurricane and no major build in supplies ahead of hurricane season and the winter.

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Gilgamesh on June 13, 2007 - 7:37pm Permalink | Subthread | Parent | Comments top

Here is a good question for everyone!

World gdp=45 trillion

us gdp maybe >3 trillion?

North American GDP maybe 4 trillion max.

now do you sell oil to 4 trillion worth of people, or 40?

I'd sell to 40 after fleecing the 4. (this ignores that canada and mexico are USA's #1,#2 oil suppliers)

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Sparaxis on June 13, 2007 - 8:39pm Permalink | Subthread | Parent | Comments top

You're only off a few trillion.

IMF figures:

World GDP: 48.1 trillion
North American GDP: 15.3 trillion

That's 1/3rd of the world, not 1/10th

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Gilgamesh on June 14, 2007 - 9:40am Permalink | Subthread | Parent | Comments top

whoops!

i guess i was thinking about the US federal government tax, and not the country as a whole. My mistake!

please continue selling oil to 1/3rd of the worlds gpd.

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mose on June 14, 2007 - 3:42pm Permalink | Subthread | Parent | Comments top

If you want a good visual of GDP, check out the first map on this link.

http://strangemaps.wordpress.com/

Best regards from Western Canada,

Mose in Midland

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