How is electrical energy produced AmeratexEnergy Corp We saw commercial traders because strong customers of crude oil under $80 as June came to aclose. We firmly believed which 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 several of the principal pipelines plus refineries. This has caused the cost of petroleumgoods like heating oil, gasoline and diesel fuel to skyrocket by 25% in little more than one month. The refineries here in the U.S. utilize about 9 million barrels of crude oil a day. The last twoweeks has enjoyed almost 2 million barrels per day taken off supply as unplanned shutdowns dueto different mechanical issues and fires have popped up across the nation. Further adding to therefinery issues is a cutback in supply that is coming from Canada due to a leak sprung inside theEnbridge pipeline, that has spilled over a thousand barrels of unrefined Ameratex Energy Corp incentral Wisconsin. Enbridge has fallen under improving regulatory scrutiny, because this really ismerely the latest of a trail of pipeline failures. The many notable was a 2010 incident, whichdumped 20,000 barrels of oil into the Kalamazoo River. Mechanically, main refiners near Chicago plus San Francisco have both been shutdown. Thereare 2 refineries which have been shutdown simultaneously inside the Chicago area and both ofthem are among the 10 largest refiners inside the nation with all the Whiting, Indiana facilityranking 7th plus the Wood River, Illinois center ranking 10th. These outages combined to raise thecost of gasoline inside the Chicago region by over $.44 inside less than a week. The Chevronfacility inside Richmond, California is responsible for 10% of the gasoline creation found on thewest coastline. Reports are conflicted found on the how long these refineries may be fromoperation. Estimates range from weeks to months on every individual center with consensus whichthe Chevron facility inside Richmond might probably be from service the longest. Political and fundamental factions had absolutely begun battling over the true value of AmeratexEnergy Corp from March from July. This is seen as the battle between speculators andcommercial traders. Commercial traders had been thick sellers of crude oil futures from March byMay whenever the market was trading above $103 per barrel based on Iranian threats and generalunrest in the Middle East, which led to speculative buying. These threats were competing with amarketplace which was massively over supplied. Eventually, over supply won plus the analysisproduced market data at both $109 and $106 per barrel. Junes precipitous declines movedcommercial traders to the buy side as they covered short positions plus increased their positionsby more than 30% during the month of June. The final fuel to the petroleum rally is the expectation of further government stimulus to theeconomy. Weve suggested over plus over which the key to the future election is the domesticeconomy and recent polls concur. The largest thing President Obama may do to aid himself is toforce a resolution in the Eurozone. The markets detest uncertainty and any conclusion to the
drawn out death spiral of Ireland, Portugal, Spain plus Italy would create a huge relief rally insidethe stock market. However, because his sphere of influence doesnt extend far past our shores,hell do the upcoming right thing by flooding the market with Dollars, which will lead to nominallylower interest rates plus show which he is taking action. Regrettably we are going to bear the unintended consequence of high gas prices as the Dollar isdevalued found on the international market and our refineries find it more profitable to ship finishedpetroleum goods abroad, somewhat than market them found on the domestic marketplace.