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ADDITIONAL INSIGHT

Wisdom from the Downstream Wizard

Very Merry Bubble Map: A Gift at the Gas Station

December 11, 2014

December 11, 2014 Filling up the Stillwater Honda Odyssey cost a very jolly $45 this week, the delightful effect of a glut of crude oil supply. The drop in prices at the pump is giving consumers a little unexpected year-end bonus. Crude oil spot prices are the lowest they’ve been since we started this blog....

Wisdom from the Downstream Wizard

2-for-1 Friday: Bubble Map and Gasoline Price Spike Update

January 24, 2014

November 15, 2012 The Bubble Map is back! Since we last checked in crude oil spot prices have fallen. The price of WTI has dropped $10 since the end of August to $85.45 on November 15th. The price differential between WTI and WCS has doubled to $32 under. Limited pipeline capacity is to blame for...

Wisdom from the Downstream Wizard

The Southern California Gas Price Spike

January 24, 2014

October 7, 2012 What happened in the spot market? Spot prices started to move up on refinery problems on 9/27. By Monday, October 1, the spot was up 30 cpg On that Monday, Exxon Mobil’s Torrance refinery lost power due to an equipment failure at Southern California Edison. Spot prices rose to 83 cpg to...

Wisdom from the Downstream Wizard

June Update on the Mid Continent Bubble

January 24, 2014

June 20, 2012 Crude oil spot prices have remained in about the same place since the last blog post, except for Western Canadian Select and Bakken.  WCS has dropped another $2 from June 1, to $22 under WTI.  The Canadian Pacific Railway strike, that ended last Friday, may have played a small part in the...

Wisdom from the Downstream Wizard

Update on the Mid Continent Bubble

January 24, 2014

May 17, 2012 We continue to keep a close eye on the crude oil supply situation in the mid continent. Since the last blog post, the price differentials of marker crudes have shrunk. As you can see from the map, on May 16, WTI was selling at $99 a barrel, down from $103 a barrel...

Wisdom from the Downstream Wizard

Why is Gasoline in California so Cheap?

January 24, 2014

By David Hackett An energy analyst friend of mine from the East Coast called and asked me why gasoline prices are so cheap in California. This is a question I have been puzzling over all summer. Of course, most readers are going to say, “What are you talking about? Retail gas prices in LA are...
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