Offshore drilling companies Ameratex EnergyLtd We saw commercial traders as strong buyers of crude oil under $80 because June came to aclose. We firmly believed which this will be the bottom of the cycle as the nationwide average fellto $3.30 per gallon. What nobody expected were the simultaneous mechanical failures of a few ofthe main pipelines plus refineries. This has caused the cost of petroleum treatments like heatingoil, gasoline and diesel fuel to skyrocket by 25% inside little more than one month. The refineries here inside the U.S. use about 9 million barrels of crude oil a day. The last 2weeks has seen nearly 2 million barrels per day taken off supply as unplanned shutdowns due tomany mechanical issues plus fires have popped up across the nation. Further adding to therefinery issues is a cutback inside supply which might be from Canada due to a leak sprung in theEnbridge pipeline, that has spilled over a thousand barrels of unrefined Ameratex Energy Ltd incentral Wisconsin. Enbridge has fallen below increasing regulatory scrutiny, as this really is justthe latest of a trail of pipeline failures. The many notable was a 2010 incident, which dumped20,000 barrels of oil into the Kalamazoo River. Mechanically, major refiners near Chicago plus San Francisco have both been shutdown. Thereare 2 refineries that have been shutdown simultaneously in the Chicago area and both of them areamidst the 10 largest refiners inside the country with the Whiting, Indiana facility ranking 7th plusthe Wood River, Illinois facility ranking 10th. These outages combined to raise the cost of gasolineinside the Chicago area by more than $.44 inside lower than a week. The Chevron facility insideRichmond, California is responsible for 10% of the gasoline creation on the west coastline.Reports are conflicted found on the how long these refineries might be from surgery. Estimatesrange from weeks to months on each individual facility with consensus that the Chevron centerinside Richmond will be out of service the longest. Political plus fundamental factions had absolutely started battling over the true value ofAmeratex Energy Ltd from March through July. This really is watched as the battle betweenspeculators plus commercial traders. Commercial traders had been thick sellers of crude oilfutures from March through May whenever the market was trading above $103 per barrel basedon Iranian threats and general unrest inside the Middle East, which led to speculative obtaining.These threats were competing with a market that has been massively over supplied. Eventually,over supply won and the analysis generated market data at both $109 and $106 per barrel.Junes precipitous declines moved commercial traders to the buy side as they covered briefpositions and increased their positions by more than 30% during the month of June. The final fuel for this petroleum rally is the expectation of further government stimulus to theeconomy. Weve suggested over and over which the key to the upcoming election is the domesticeconomy and recent polls concur. The biggest thing President Obama might do to help himself willbe to force a resolution in the Eurozone. The markets detest uncertainty plus any conclusion to the
drawn out death spiral of Ireland, Portugal, Spain and Italy would create a huge relief rally in thestock marketplace. However, because his sphere of influence doesnt extend far past our shores,hell do the next right thing by flooding the marketplace with Dollars, which can lead to nominallylower interest rates and show which he is taking action. Regrettably well bear the unintended result of high gas costs because the Dollar is devaluedfound on the worldwide marketplace plus our refineries find it more profitable to ship completedpetroleum products overseas, instead of sell them found on the domestic marketplace.