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202 comments on Gas Shortages?: This Week in Petroleum - September 24

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goghgoner on September 24, 2008 - 10:01am Permalink | Subthread | Parent | Comments top

There is no place for the cargo to be unloaded.

http://customercenter.murphyoilcorp.com/index.cfm?show=803&product=DTNMK...

Market sources said about 32 gasoline cargoes were on their way to the New York Harbor from Europe, and nearly half of them were unsold. In normal circumstances, these unsold cargoes would be diverted to the U.S. Gulf Coast market since there's no storage space left in the Harbor.

To further compound this issue there are two storms headed along the East coast.

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indeolie on September 25, 2008 - 6:23am Permalink | Subthread | Parent | Comments top

there's no storage space left in the Harbor

So this really is purely a distribution problem then. Gasoline piling up in NYH unable to get to the Southwest. Explains why Euro gasoline cracks took a dive yesterday - little demand over here and the US physically unable to absorb excess barrels.

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BillJames on September 25, 2008 - 11:36pm Permalink | Subthread | Parent | Comments top

Logistics is a very complex task. Once routines start to come apart, the imbalance will likely cause more imbalance.

The wheels can come off the cart very quickly. And unlike financials, you cannot print more food and gasoline.

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202 comments on Gas Shortages?: This Week in Petroleum - September 24

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