And the wierd thing is that both spot crude and gasoline prices are moderately down today, even after the big losses they had yesterday   Strange markets indeed.

 

Not that strange. Refinery explosions won't affect the price of crude oil at all. It might actually push the price down a little bit because there is less infrastructure to refine the crude oil to begin with. Where the price jump will be is in wholesale unleaded gas futures. However, I'd expect a delay there because the gas inventory is fairly good atm, however - if the Texas City plant is shut down for weeks/months, the price of gas could see a rise (probably a few cents a gallon 5-10) as a result.

 

(The following has no basis in fact as I'm only pretending to know of which I speak)

Not that strange. Refinery explosions won't affect the price of crude oil at all. It might actually push the price down a little bit because there is less infrastructure to refine the crude oil to begin with. Where the price jump will be is in wholesale unleaded gas futures. However, I'd expect a delay there because the gas inventory is fairly good atm, however - if the Texas City plant is shut down for weeks/months, the price of gas could see a rise (probably a few cents a gallon 5-10) as a result.

 

(The following has no basis in fact as I'm only pretending to know of which I speak)

 

your signature makes me shudder everytime I see it

Not that strange. Refinery explosions won't affect the price of crude oil at all. It might actually push the price down a little bit because there is less infrastructure to refine the crude oil to begin with. Where the price jump will be is in wholesale unleaded gas futures. However, I'd expect a delay there because the gas inventory is fairly good atm, however - if the Texas City plant is shut down for weeks/months, the price of gas could see a rise (probably a few cents a gallon 5-10) as a result.

 

(The following has no basis in fact as I'm only pretending to know of which I speak)

 

For not knowing what you are talking about, you aren't too far off. You thought about a career in talk radio?

 

It isn't the explosion that causes the uptick, its the people panicing after it. Its the same reason that when someone blows up a bomb that shuts down Iraqi oil, crude goes up $1. Its all psychogical. In reality, that crude was 3-4 months away from being gasoline, if that is exactly what that part of the refinery was doing. The only price it should affect would be something like september deliveries of specific energy futures. But in the real world people panic and drive prices up artifically.

Don't make me pull out the link.

My Dad who used to work at Texas City for several years (thankfully he's in Edmonton now) told me that his old trailer was roughly 1500 feet away from the explosion. The windows were blown out, incredible.

My Dad who used to work at Texas City for several years (thankfully he's in Edmonton now) told me that his old trailer was roughly 1500 feet away from the explosion. The windows were blown out, incredible.

 

Wow, that has got to send a chill down your spine. I can't imagine.

For not knowing what you are talking about, you aren't too far off.  You thought about a career in talk radio? 

 

It isn't the explosion that causes the uptick, its the people panicing after it.  Its the same reason that when someone blows up a bomb that shuts down Iraqi oil, crude goes up $1.  Its all psychogical.  In reality, that crude was 3-4 months away from being gasoline, if that is exactly what that part of the refinery was doing.  The only price it should affect would be something like september deliveries of specific energy futures.  But in the real world people panic and drive prices up artifically.

 

But I'm thinking that the market is already panicked out. When we hit 57 dollars, profit taking cycles started that are keeping oil between 53 and 55 dollars. The futures market already has the oil crunch effect in fully. It seems that the current sentiment that I see has more to do with future supply to be in decline and that we're at the top of the bell so to speak.

But I'm thinking that the market is already panicked out. When we hit 57 dollars, profit taking cycles started that are keeping oil between 53 and 55 dollars. The futures market already has the oil crunch effect in fully. It seems that the current sentiment that I see has more to do with future supply to be in decline and that we're at the top of the bell so to speak.

 

If there is anything I have learned after being in this industry for 6 years, is there is no such thing as too much panic. Panic makes traders money. Simply put, panic is good. (sorry Gordon Gecko)

 

But yeah, my magic numbers for crude are $57 and $50. It is in a pretty tight short term pattern right now, but if it breaks one of these numbers, it has a ways to go until it finds resistance. I was hoping they would continue the sell off today, that started yesterday, but no such luck.

It has a ways to go until it finds resistance. 

 

Plenty of resistance here.

If there is anything I have learned after being in this industry for 6 years, is there is no such thing as too much panic.  Panic makes traders money.  Simply put, panic is good. (sorry Gordon Gecko)

 

But yeah, my magic numbers for crude are $57 and $50.  It is in a pretty tight short term pattern right now, but if it breaks one of these numbers, it has a ways to go until it finds resistance.  I was hoping they would continue the sell off today, that started yesterday, but no such luck.

 

Am I actually holding my own with someone who works with this crap?

 

How come I have no money then?

Am I actually holding my own with someone who works with this crap?

 

How come I have no money then?

 

Because you keep buying coffee tables and Bea Arthur posters (too easy Wino, too easy)

Damn that 100 dollar a day coffee table addiction. It ruined me.

Expect a hike at the pump above normal at the start of the summer season.

That BP refinery provided 3% of the nations oil supply. That shows you how important these refineries are. We definitely need more. No refinery should be responsible for more than 1%.

I'm going to start going to BP more. They have stated that they will not participate in any ANWR wildlife refuge oil projects in Alaska.

Good news. The plant is back up & running & the 3% production is not threatened. The BP plant was designed with redundancy. Another area has picked up the loss production of the damaged area.

I'm going to start going to BP more. They have stated that they will not participate in any ANWR wildlife refuge oil projects in Alaska.

What?! I guess I have to stop going there.