Low Oil Prices Does Not Mean Low Gas Prices
http://www.usatoday.com/money/industries/energy/2009-02-15-oil-gas-prices_N.htm
Oil prices are down in the dumps. But it is not reflecting in the gas process. One of the main reasons is the refiners. As a result of weak demand, the oil refiners have reduced production. The average rate of utilization at U.S. refineries was roughly 81.5% as of 6th Feb. This is a 17-year low, according to the Energy Information Administration. The refiners are shutting down units as the demand is poor.
The refiners did not cut their production enough in the last quarter of 2008 when gasoline demand was feeble. That time refines did lose a lot of money but offset their losses with diesel fuel. The gas prices will rise but there is no need to worry. It will stabilize after some time.
Subscribe to:
Post Comments (Atom)
0 comments:
Post a Comment