Good afternoon, folks. Long time since I've posted, but like always, I remain obsessively addicted to TOD and always appreciate the perspective and insight this community is able to share. That being the case, I have a question for any who is up to aswer it: It is my understanding that the SPR contains crude oil only, not distilled products such as gasoline and diesel. That being the case, I don't quite understand how the release of that stock would be of any benefit in the next week or so, if indeed, it turns out that there has been significant refinery damage (not known at present). If the gasoline stations in southern Louisiana have to wait for shipments of refined products to arrive from other regions or countries, I would think they may be waiting a while. Am I wrong?

Dred

I've got no idea its going to be a rush to the spot market obviously.

In my opinion the big deal is the US diesel exports that are lost this is going to throw a serious money wrench in the works.

Given it looks like we probably will have more hurricanes in the gulf unless we get really lucky this event may be enough to cause a serious global diesel shortage. Given that diesel is critical for agriculture movement of goods and services etc etc we may be in for some short and long term blow back from this one hurricane. Further out it puts a lot of pressure on heating oil production just in time for winter.

In particular this could well be the event that sends Pakistan into serious turmoil. Attempts to subsidize diesel will have no effect since we now simply don't have enough diesel in the world right at harvest time.

Of course the US is myopic and only cares about gasoline prices.