Hi power batteries Ameratex Securities We saw commercial traders as strong customers of crude oil below $80 as June came to aclose. We firmly believed that this will be the bottom of the cycle because the nationwide averagefell to $3.30 per gallon. What no one expected were the simultaneous mechanical failures of a fewof the primary pipelines plus refineries. This has caused the price of petroleum goods like heatingoil, gasoline and diesel gas to skyrocket by 25% in little more than one month. The refineries here in the U.S. use regarding 9 million barrels of crude oil a day. The last 2weeks has enjoyed nearly 2 million barrels per day taken off supply because unplannedshutdowns due to different mechanical issues plus fires have popped up across the nation. Furtheradding to the refinery issues is a cutback in supply that is coming from Canada due to a leaksprung in the Enbridge pipeline, that has spilled over a thousand barrels of unrefined AmeratexSecurities in central Wisconsin. Enbridge has fallen below increasing regulatory scrutiny, becausethis might be really the newest of the trail of pipeline failures. The most notable was a 2010incident, that dumped 20,000 barrels of oil into the Kalamazoo River. Mechanically, major refiners near Chicago plus San Francisco have both been shutdown. Thereare two refineries that have been shutdown simultaneously in the Chicago area and both of themare amidst the 10 biggest refiners inside the country with the Whiting, Indiana facility ranking 7thplus the Wood River, Illinois facility ranking 10th. These outages combined to raise the cost ofgasoline in the Chicago region by more than $.44 inside lower than a week. The Chevron facilityinside Richmond, California is responsible for 10% of the gasoline production found on the westcoast. Reports are conflicted on the how long these refineries will be from operation. Estimatesrange from weeks to months on each individual facility with consensus that the Chevron facilityinside Richmond usually probably be from service the longest. Political plus fundamental factions had already started battling over the true value of AmeratexSecurities from March by July. This is seen because the battle between speculators pluscommercial traders. Commercial traders had been heavy sellers of crude oil futures from Marchfrom May whenever the market was trading above $103 per barrel based on Iranian threats andgeneral unrest inside the Middle East, that led to speculative ordering. These threats werecontending with a marketplace which was massively over supplied. Eventually, over supply wonplus the analysis generated sell signals at both $109 plus $106 per barrel. Junes precipitousdeclines moved commercial traders to the buy side as they covered short positions and improvedtheir positions by more than 30% throughout the month of June. The final gas to the petroleum rally is the expectation of further government stimulus to theeconomy. Weve suggested over and over that the key to the upcoming election is the domesticeconomy plus recent polls concur. The biggest thing President Obama might do to help himselfwill be to force a resolution in the Eurozone. The markets detest uncertainty plus any conclusion tothe drawn out death spiral of Ireland, Portugal, Spain and Italy would create a big relief rally in thestock market. However, because his sphere of influence doesnt extend far past our shores, hell
do the upcoming ideal thing by flooding the marketplace with Dollars, that may cause nominallylower interest rates and show which he is taking action. Regrettably well bear the unintended result of high gas prices because the Dollar is devalued onthe international marketplace plus our refineries find it more successful to ship completedpetroleum treatments overseas, rather than market them found on the domestic market.