Ameratex Energy Ltd colorado oil and gas We saw commercial traders as strong customers of crude oil below $80 because June came toa close. We firmly believed that this would be the bottom of the cycle because the nationalaverage fell to $3.30 per gallon. What nobody expected were the simultaneous mechanicalfailures of certain of the primary pipelines plus refineries. This has caused the cost of petroleumproducts like heating oil, gasoline plus diesel fuel to skyrocket by 25% in little multiple month. The refineries here inside the U.S. utilize about 9 million barrels of crude oil per day. The lasttwo weeks has seen almost 2 million barrels per day taken off supply as unplanned shutdownsdue to many mechanical issues and fires have popped up over the nation. Further adding to therefinery issues is a cutback in supply which is from Canada due to a leak sprung inside theEnbridge pipeline, that has spilled more than a thousand barrels of unrefined Ameratex Energy Ltd inside central Wisconsin. Enbridge has fallen under increasing regulatory scrutiny, as this really isreally the newest of the trail of pipeline failures. The most notable was a 2010 incident, thatdumped 20,000 barrels of oil into the Kalamazoo River. Mechanically, main refiners near Chicago and San Francisco have both been shutdown. Thereare two refineries which have been shutdown simultaneously in the Chicago region and both ofthem are amidst the 10 largest refiners in the country with the Whiting, Indiana center ranking 7thplus the Wood River, Illinois center ranking 10th. These outages combined to raise the cost ofgasoline in the Chicago area by more than $.44 inside lower than a week. The Chevron center inRichmond, California is responsible for 10% of the gasoline production found on the westcoastline. Reports are conflicted found on the how extended these refineries is out of procedure.Estimates range from weeks to months on each individual center with consensus that the Chevronfacility inside Richmond will be from service the longest. Political plus fundamental factions had absolutely begun battling over the true value ofAmeratex Energy Ltd from March through July. This is watched because the battle betweenspeculators plus commercial traders. Commercial traders had been thick sellers of crude oilfutures from March from May whenever the marketplace was trading above $103 per barrel basedon Iranian threats plus general unrest in the Middle East, that led to speculative ordering. Thesethreats were contending with a marketplace which was massively over supplied. Eventually, oversupply won and the analysis produced sell data at both $109 plus $106 per barrel. Junesprecipitous declines moved commercial traders to the buy side because they covered shortpositions and increased their positions by over 30% during the month of June. The final gas to the petroleum rally is the expectation of further government stimulus to theeconomy. Weve recommended over plus over that the key to the upcoming election is thedomestic economy and recent polls concur. The biggest thing President Obama could do to helphimself will be to force a resolution in the Eurozone. The markets detest uncertainty and anyconclusion to the drawn out death spiral of Ireland, Portugal, Spain plus Italy would create a bigrelief rally in the stock marketplace. However, since his sphere of influence doesnt extend far past
the shores, hell do the upcoming right thing by flooding the market with Dollars, which mightcause nominally lower interest rates plus show that he is taking action. Regrettably we are going to bear the unintended result of higher gas prices as our Dollar isdevalued found on the worldwide marketplace and the refineries find it more successful to shipcompleted petroleum goods overseas, somewhat than sell them found on the domesticmarketplace.