Offshore oil drilling companies AmeratexEnergy Inc We saw commercial traders because strong customers of crude oil below $80 because Junecame to a close. We firmly believed that this would be the bottom of the cycle as the nationalaverage fell to $3.30 per gallon. What nobody expected were the simultaneous mechanicalfailures of a few of the principal pipelines plus refineries. This has caused the price of petroleumproducts like heating oil, gasoline plus diesel gas to skyrocket by 25% inside little over one month. The refineries here in the U.S. utilize regarding 9 million barrels of crude oil a day. The last twoweeks has watched almost 2 million barrels a day taken off supply because unplanned shutdownsdue to numerous mechanical issues plus fires have popped up over the nation. Further adding tothe refinery issues is a cutback inside supply which can be from Canada due to a leak sprung inthe Enbridge pipeline, that has spilled over a thousand barrels of unrefined Ameratex Energy Incin central Wisconsin. Enbridge has fallen under improving regulatory scrutiny, because this is onlythe latest of a trail of pipeline failures. The many notable was a 2010 incident, that dumped 20,000barrels 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 in the Chicago area and both of themare amidst the 10 biggest refiners in the nation with all the Whiting, Indiana facility ranking 7th plusthe Wood River, Illinois center ranking 10th. These outages combined to raise the price ofgasoline inside the Chicago area by more than $.44 in lower than a week. The Chevron facilityinside Richmond, California is responsible for 10% of the gasoline creation found on the westcoastline. Reports are conflicted on the how lengthy these refineries might be from procedure.Estimates range from weeks to months on every individual center with consensus that theChevron center in Richmond can probably be out of service the longest. Political and fundamental factions had already started battling over the true value of AmeratexEnergy Inc from March from July. This is seen as the battle between speculators plus commercialtraders. Commercial traders had been heavy sellers of crude oil futures from March from Maywhenever the marketplace was trading above $103 per barrel based on Iranian threats plusgeneral unrest in the Middle East, which led to speculative buying. These threats were competingwith a market that has been massively over supplied. Eventually, over supply won and theanalysis produced sell signals at both $109 and $106 per barrel. Junes precipitous declinesmoved commercial traders to the buy side as they covered short positions and improved theirpositions 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 recommended over plus over that the key to the future election is the domesticeconomy and recent polls concur. The biggest thing President Obama can do to aid himself wouldbe to force a resolution in the Eurozone. The markets detest uncertainty plus any conclusion to the
drawn out death spiral of Ireland, Portugal, Spain plus Italy would create a big relief rally inside thestock market. However, because his sphere of influence doesnt extend far past the shores, helldo the next ideal thing by flooding the marketplace with Dollars, which might lead to nominallylower interest rates and show which he is taking action. Regrettably you will bear the unintended result of high gas prices as our Dollar is devalued onthe worldwide market and the refineries find it more profitable to ship completed petroleumtreatments overseas, rather than sell them on the domestic market.