- Nov 9, 2003
- 16,512
- 5,865
From the weekly EIA report for the week ending 5/19/06:
Domestic production of crude oil averaged 5,093,000 bbls/day, while an average of 9,557,000 bbls/day were imported.
Crude oil inputs to domestic refineries averaged 15,333,000 bbls/day, leaving crude oil stockpiles down slightly at 343,900,000 bbls.
Domestic refineries operated at an average 89.7% of capacity for the week, the 2nd highest level in a rolling 4 week period.
Jet fuel production for the week averaged 1,392,000 bbls/day, while another 256,000 bbls/day was imported.
Jet fuel supplied averaged 1,745,000 bbls/day. Lower domestic production, only partly offset by higher imports, left the jet fuel stocks at 39,500,000 bbls at the end of the week. Presumably, a focus on gasoline as the summer driving season arrives was responsible - gasoline production up sharply.
Now for the spot price data:
NY Harbor Jet - $2.0580
Gulf Coast Jet - $2.0030
Los Angeles Jet - $2.1450
WTI Cushing Crude - $68.44/bbl
From Platt's, the regional prices of jet fuel:
Europe & CIS - $204.7
North America - $2.053
Asia & Oceania - $2.025
Middle East & Africa - $1.970
Latin & Central America - $2.034
Bloomberg is reporting WTI Cushing at $70.45 as of 10:05AM - before the EIA report was issued.
Not in the usual chart below, but the average May spot price for jet fuel (simple average of NY Harbor, Gulf Coast, & LA) as of 5/23/06 is $2.1288/gal.
View attachment 4902
Finally, in another installment of what I've called "the SpinDoc section", the FTC issued their report on the Congressionally mandated investigation into price gouging and/or market manipulation following Katrina/Rita. While the report, as directed by Congress, was concerned with gas price gouging/manipulation, the general conclusions are probably applicable to all petroleum markets. The complete report is here, but the key results were:
- No evidence to suggest that refiners manipulated prices through any means, including running their refineries below full productive capacity to restrict supply, altering their refinery output to produce less gasoline, or diverting gasoline from markets in the United States to less lucrative foreign markets. The evidence indicated that these firms produced as much gasoline as they economically could, using computer models to determine their most profitable slate of products.
- No evidence to suggest that refinery expansion decisions over the past 20 years resulted from either unilateral or coordinated attempts to manipulate prices. Rather, the pace of capacity growth resulted from competitive market forces.
- No evidence to suggest that petroleum pipeline companies made rate or expansion decisions in order to manipulate gasoline prices.
- No evidence to suggest that oil companies reduced inventory to increase or manipulate prices or exacerbate the effects of price spikes generally, or due to hurricane-related supply disruptions in particular.
- No situations that might allow one firm – or a small collusive group – to manipulate gasoline futures prices by using storage assets to restrict gasoline movements into New York Harbor, the key delivery point for gasoline futures contracts.
"The Commission also determined that, in light of the amount of gasoline production and pipeline capacity eliminated by Hurricanes Katrina and Rita – which is detailed in the report – and the typical inelastic response of consumer demand to gasoline price changes, the post-hurricane gasoline price increases at the national and regional levels were approximately what would be predicted by the standard supply-and-demand model of a market performing competitively. The conduct of firms in response to the supply shocks from the hurricanes was consistent with competition. In particular, firms diverted supply from lower-priced areas to higher priced areas, firms drew down their inventories, refineries not affected by the hurricanes increased output, and gasoline imports increased."
Jim
ps - next week I work Tue-Fri again, so the update will be late.
Domestic production of crude oil averaged 5,093,000 bbls/day, while an average of 9,557,000 bbls/day were imported.
Crude oil inputs to domestic refineries averaged 15,333,000 bbls/day, leaving crude oil stockpiles down slightly at 343,900,000 bbls.
Domestic refineries operated at an average 89.7% of capacity for the week, the 2nd highest level in a rolling 4 week period.
Jet fuel production for the week averaged 1,392,000 bbls/day, while another 256,000 bbls/day was imported.
Jet fuel supplied averaged 1,745,000 bbls/day. Lower domestic production, only partly offset by higher imports, left the jet fuel stocks at 39,500,000 bbls at the end of the week. Presumably, a focus on gasoline as the summer driving season arrives was responsible - gasoline production up sharply.
Now for the spot price data:
NY Harbor Jet - $2.0580
Gulf Coast Jet - $2.0030
Los Angeles Jet - $2.1450
WTI Cushing Crude - $68.44/bbl
From Platt's, the regional prices of jet fuel:
Europe & CIS - $204.7
North America - $2.053
Asia & Oceania - $2.025
Middle East & Africa - $1.970
Latin & Central America - $2.034
Bloomberg is reporting WTI Cushing at $70.45 as of 10:05AM - before the EIA report was issued.
Not in the usual chart below, but the average May spot price for jet fuel (simple average of NY Harbor, Gulf Coast, & LA) as of 5/23/06 is $2.1288/gal.
View attachment 4902
Finally, in another installment of what I've called "the SpinDoc section", the FTC issued their report on the Congressionally mandated investigation into price gouging and/or market manipulation following Katrina/Rita. While the report, as directed by Congress, was concerned with gas price gouging/manipulation, the general conclusions are probably applicable to all petroleum markets. The complete report is here, but the key results were:
- No evidence to suggest that refiners manipulated prices through any means, including running their refineries below full productive capacity to restrict supply, altering their refinery output to produce less gasoline, or diverting gasoline from markets in the United States to less lucrative foreign markets. The evidence indicated that these firms produced as much gasoline as they economically could, using computer models to determine their most profitable slate of products.
- No evidence to suggest that refinery expansion decisions over the past 20 years resulted from either unilateral or coordinated attempts to manipulate prices. Rather, the pace of capacity growth resulted from competitive market forces.
- No evidence to suggest that petroleum pipeline companies made rate or expansion decisions in order to manipulate gasoline prices.
- No evidence to suggest that oil companies reduced inventory to increase or manipulate prices or exacerbate the effects of price spikes generally, or due to hurricane-related supply disruptions in particular.
- No situations that might allow one firm – or a small collusive group – to manipulate gasoline futures prices by using storage assets to restrict gasoline movements into New York Harbor, the key delivery point for gasoline futures contracts.
"The Commission also determined that, in light of the amount of gasoline production and pipeline capacity eliminated by Hurricanes Katrina and Rita – which is detailed in the report – and the typical inelastic response of consumer demand to gasoline price changes, the post-hurricane gasoline price increases at the national and regional levels were approximately what would be predicted by the standard supply-and-demand model of a market performing competitively. The conduct of firms in response to the supply shocks from the hurricanes was consistent with competition. In particular, firms diverted supply from lower-priced areas to higher priced areas, firms drew down their inventories, refineries not affected by the hurricanes increased output, and gasoline imports increased."
Jim
ps - next week I work Tue-Fri again, so the update will be late.
