Month: September 2010

Game on again: AXXIS is back, probable price hike tomorrow

Wednesday, September 29, 2010, 10:00PM: Has it really been a month since my last posting? I’m sorry … my friends know it has been a challenging month for me. It has also been a challenge for our web site, as some of our sources of wholesale prices have been either turned off or have been unreliable. On the other hand, AXXIS is available again (thanks, Bill for keying me in!), and I am watching the daily numbers for Chicago. With a jump today on NYMEX, combined with some key drops in retail prices, such as dropping to $2.59 in Allendale, I think we are set up for a price hike tomorrow, to $2.75 or so. Consider that a prediction. Looking ahead into autumn, prices ought to drop as we get closer to Christmas. At least that has been the seasonal pattern. — Ed Aboufadel

Pipeline ruptures, Chicago spot jumps 24 cents

Spot market gasoline and gasoline blendstock
futures in Chicago posted massive one-day gains Friday afternoon, as traders,
marketers and refiners scrambled to cover short positions and pending supply
requirements on news crude oil supply from Canada to the United States was cut
dramatically by a rupture in an Enbridge pipeline that feeds several Midwest
refineries.

Canada is the largest oil exporter to the U.S. and Enbridge’s pipeline
system is the main transit route for those exports. A second Enbridge line has
been shut since a rupture was discovered in late July, and the pipeline carrier
is waiting for approval to restart that line.

The shutdown of the 670,000 bpd Enbridge pipeline is expected to impact
deliveries into Citgo’s 167,000 bpd refinery in Lemont, Illinois, BP’s 435,000
bpd Whiting, Indiana plant and ExxonMobil’s 238,600 bpd Joliet, Illinois
refinery.

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Expect a big jump in prices over the weekend. All spike lines are $2.90-$3.00. Expect most to stop at the magical $2.99. Michigan and North West Indiana may go above that, to $3.09-3.15. Ohio may fall lower as it is farther from the mess, say $2.89.

What are the odds?

It looks like there is a possibility of a spike tomorrow. All but Indiana are in Spike Line territory, and it’s close. Be on the lookout for higher prices tomorrow.

What are the odds it’s also someone’s birthday tomorrow? Happy birthday, buddy. I hope your wishes of cheaper gas come true, for all of us.

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