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Considering that spot crude costs have risen by about 83% y-o-y, I would think that diesel and gasoline prices are likely to continue to rise for quite some time to come as the current spot crude price has yet to fully work its way into the refinery complex. If spot prices sustain above $115 per barrel over then prices are going to continue their upwards trajectory for at least 8-10 weeks.
The really interesting things to note about US prices are the following:
Retail/distribution margins for gasoline and diesel have fallen by about 20-25% since the same time last year - considering that operator costs have risen quite sharply over that time-frame, then that sector of the market has gotta be hurting..badly.
According to EIA data, the refining margins in March for gasoline were 8%, and for diesel they were 20%. A year ago gasoline and diesel prices were at parity, but have now decoupled.
Methinks that there is an element of cross-subsidy from diesel to gasoline going on. Not surprising as it is an election year, and the big oil companies all have an interest in innoculating themselves from political scrutiny as much as possible.... a losing battle perhaps, but that doesn't mean that they won't pull every trick that they can find up their immaculately-tailored sleeves.
420 000 bbls per day of ethanol.
Diesel can't be "blended" with ethanol.
????
Without diesel to sow, to harvest and to transport corn to the distillery (and transport ethanol to market) you don't have 420,000 barrels of anything.
Show us a piece of farm equipment that burns ethanol...
I live in an out of the way place. I have various diesel and gasoline burning pieces of equipment.Last week I cleared a spot for a solar greenhouse with a masonry heater. I had to take down about 10 trees and stump it too. Alone, I was able to get all the trees down and stumps up, wood bucked and split and begin preparing for the foundation in just about 4 days. All the while I was thinking about where I'd be in the project without my backhoe, chainsaw, tractor and wood splitter. Maybe have the first couple of trees down. Life will be different when fuel is scarce.
When petroleum fuels begin to really get short will there be enough allocated to us hicks out here to process firewood or will cities and towns be favored at our expense?
Sounds like you have a large enough spread to grow your own biodiesel feedstock and won't need to worry whether "us hicks" get some or not when events get to that point.
You know I'm a farmer, eh?
I said diesel is higher because it can not be blended with ethanol.
Gasoline is lower in price because it can be blended with ethanol.
And, yes, "Without diesel to sow, to harvest and to transport corn to the distillery (and transport ethanol to market) you don't have 420,000 barrels of anything.
Show us a piece of farm equipment that burns ethanol..."
I've said from Day 1 here that ethanol is negative EROEI.
But that's why diesel has gone over $4.
It more accurately reflects the supply bottleneck.
Not true...Diesel can be blended with many things. The engine it is used in, must be modified a bit.
BZ
But not ethanol.