Had to say good-bye today to my faithful companion and it really sucks. Greatest injustice in life is the mismatched life spans of man & dog. Farewell, Zoe.
Tom Kloza
10.2K posts
Tom Kloza
@TomKloza
Independent oil analyst, keynote speaker, co-founder of OPIS. Been covering energy markets since Jimmy Hoffa went missing. [email protected]
Ft. Myers FL & Farmingdale NJ
Joined October 2013
- Oil analysts can no longer ignore Ukrainian drone attacks on Russian refineries. Last 72 hours has seen a ~300,000 b/d refinery in Volgograd region knocked out, and that follows loss of a Lukoil-owned refinery on weekend. These items need to be baked into oil commentaries.
- Looks like the tariff shoes are dropping in New England. Reports indicate Irving Oil is hiking U.S. gasoline and diesel wholesale postings by 20cts/gal or more.
- Personal note: Tomorrow, I begin my 45th year as an oil reporter/analyst. That's approximately 16,070 days for the same "professional" job, most of which have been rewarding. I hope to make it to 50 years, at the very least, since the industry is more dynamic than it was in 1975.
- Expect retail prices for diesel to increase to $5.25-$5.50/gal nationwide next week. In a week with wild wholesale increases, OPIS sees diesel surge of 40cts/gal in Northeast; 26cts/gal at Gulf Coast; 15-16cts/gal in Midwest and West Coast. More freight surcharges loom.
- Incredible spike this week for heating oil, diesel and jet fuel markets. OPIS confirms wholesale price increases of 75cts/gal to over $1/gal in the week. Return of some ugly inflation to freight, home comfort, and airfares.
- Diesel fuel is screaming higher again in futures' markets today - -physical prices doing even better. With crude wobbling between $88-$96/bbl, price of diesel varies from $140.28/bbl in Los Angeles to $195.30/bbl in New York. No break for inflation.
- Huge news in California: Phillips 66 will close its Los Angeles refinery. With California waging a de facto war on refiners, you can connect the dots.
- Diesel becoming more and more unmoored. Fetches cracks of $95/bbl in Northeast; $68/bbl Gulf Coast; $66-$90/bbl Midwest; $63/bbl Southern Cal; $90/bbl Pac Northwest. Soybean oil is no slouch - - worth equivalent of ~5.51/gal before processing.
- A personal milestone: Today, I mark completion of Year 45 as an energy reporter. The last six months have had as much volatility and action as the first 44 years. I hope to continue providing objective analysis as we move through the Energy Transition.
- This is an embarrassing and inaccurate statement about oil security. Absolutely shameful when one considers North American crude production of over 17-million b/d currently.Some SPR thoughts we shared with @seanhannity yesterday: The U.S. Strategic Petroleum Reserve (SPR) was established in the 1970s in reaction to oil supply shortages brought on by Middle East instability and the Arab oil embargo. The primary release scenarios identified were
- For the first time in 654 days, US consumers are paying less for gasoline than they did one year ago. OPIS/AAA average of $3.329/gal includes 26 states with prices cheaper than on last year. Before this downturn ends, expect all states but AK, HI & NV to see gasoline deflation.
- Today is the last day of my 46th year as an oil reporter. I'll make sure I provide the link for the online registry before the weekend is over. Tomorrow begins year 47, and I still have all my hair!!!
- Gasoline & Diesel spot prices going absolutely ballistic -- if you see a tanker truck pass you on the road, its cargo may be worth $2400 more than what it was worth last night. Multiply that by 50,000 trucks on the road each day and you can visualize the bedlam.
