Electric energy providers Ameratex Energy Inc We saw commercial traders because strong customers of crude oil under $80 because Junecame to a close. We firmly believed which this would be the bottom of the cycle as the nationwideaverage fell to $3.30 per gallon. What nobody expected were the simultaneous mechanicalfailures of some of the leading pipelines and refineries. This has caused the cost of petroleumgoods like heating oil, gasoline and diesel fuel to skyrocket by 25% inside little multiple month. The refineries here in the U.S. use regarding 9 million barrels of crude oil per day. The last twoweeks has watched almost 2 million barrels per day taken off supply as unplanned shutdowns dueto many mechanical issues and fires have popped up across the country. Further adding to therefinery issues is a cutback inside supply that might be coming from Canada due to a leak sprunginside the Enbridge pipeline, that has spilled over a thousand barrels of unrefined AmeratexEnergy Inc in central Wisconsin. Enbridge has fallen below improving regulatory scrutiny,because this is only the newest of the trail of pipeline failures. The many notable was a 2010incident, that dumped 20,000 barrels of oil into the Kalamazoo River. Mechanically, major refiners near Chicago and San Francisco have both been shutdown. Thereare 2 refineries which have been shutdown simultaneously inside the Chicago region and both ofthem are amidst the 10 largest refiners inside the country with the Whiting, Indiana center ranking7th plus the Wood River, Illinois center ranking 10th. These outages combined to raise the price ofgasoline in the Chicago region by more than $.44 inside lower than a week. The Chevron centerinside Richmond, California is responsible for 10% of the gasoline creation on the west coast.Reports are conflicted on the how lengthy these refineries is from surgery. Estimates range fromweeks to months on every individual center with consensus that the Chevron center in Richmondwill be out of service the longest. Political and fundamental factions had absolutely begun battling over the true value of AmeratexEnergy Inc from March through July. This really is watched because the battle betweenspeculators and commercial traders. Commercial traders had been thick sellers of crude oil futuresfrom March by May whenever the market was trading above $103 per barrel based on Iranianthreats plus general unrest inside the Middle East, which led to speculative purchasing. Thesethreats were competing with a marketplace that has been massively over provided. Eventually,over supply won plus the analysis generated market signals at both $109 and $106 per barrel.Junes precipitous declines moved commercial traders to the buy side as they covered shortpositions plus 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 which the key to the upcoming election is thedomestic economy and recent polls concur. The largest thing President Obama could do to helphimself would be to force a resolution in the Eurozone. The markets detest uncertainty plus anyconclusion to the drawn out death spiral of Ireland, Portugal, Spain plus Italy would create a hugerelief rally inside the stock market. However, because his sphere of influence doesnt extend far
past the shores, hell do the next ideal thing by flooding the market with Dollars, which usually leadto nominally lower interest rates and show which he is taking action. Regrettably we are going to bear the unintended result of higher gas prices as our Dollar isdevalued on the international marketplace and our refineries find it more profitable to ship finishedpetroleum products overseas, instead of market them on the domestic market.