Oil and Gasoline Fall as Fuel Price Hikes Slow Demand Growth

[rack'm]

Sept. 16 (Bloomberg) -- Crude oil fell and gasoline plunged to a one-month low on signs that record fuel prices are slowing growth in global energy demand. ``Signs of weaker demand are hanging over the market,'' said Tom Bentz, an oil broker at BNP Paribas Commodity Futures Inc. in New York. ``There has been a tremendous rise in prices over the past year, which had to have an effect.''

OPEC reduced its forecast for oil demand for a fifth straight month in a report yesterday. The U.S. Energy Department and International Energy Agency have also cut their demand estimates this month. IEA said yesterday it wouldn't release more stockpiles to fill gaps caused by Hurricane Katrina after an auction of U.S. oil reserves met weak demand.

 

[FromTexas]

bah! That can't be true! We are going to be rationed because thats what the gas station guy said! It will be gas lines again! THE SKY IS FALLING!

 

[kwillia]

Pssssst... I know of a few stations that did run out of diesel for a while... if the pipelines didn't become operational as fast as they did, it would of been more than a few...:shrug:

 

[FromTexas]

Pssssst... I know of a few stations that did run out of diesel for a while... if the pipelines didn't become operational as fast as they did, it would of been more than a few...:shrug:

No. The stations ran out because people paniced and everyone went to the pumps at once. After it was all said and done, the pipeline did not reduce the wholesale stocks on our coast. It was shown that people who ordered gas, got gas. Some people just didn't have deliveries till their normal times during the week.

 

[kwillia]

No. The stations ran out because people paniced and everyone went to the pumps at once. After it was all said and done, the pipeline did not reduce the wholesale stocks on our coast. It was shown that people who ordered gas, got gas. Some people just didn't have deliveries till their normal times during the week.

We fuel up our dumptruck and tractor trailer at which is a "namebrand" station and prior to "the panic" the owner was told he was being put on rotational delivery until the piplines were fully operational again and he did run out at one point and we had to go else where a couple times. Some truckers talked about the same thing happening at other stations. I'm just sayin'.

 

[FromTexas]

We fuel up our dumptruck and tractor trailer at which is a "namebrand" station and prior to "the panic" the owner was told he was being put on rotational delivery until the piplines were fully operational again and he did run out at one point and we had to go else where a couple times. Some truckers talked about the same thing happening at other stations. I'm just sayin'.

Suppliers can panic, too. It doesn't mean that they didn't have the supplies. The pipeline was only below 70% capacity for a few days. What they were doing is responding to what they thought was major problem but never was.. (i.e. panic).

 

[Kizzy]

bah! That can't be true! We are going to be rationed because thats what the gas station guy said! It will be gas lines again! THE SKY IS FALLING!

Suppliers can panic, too. It doesn't mean that they didn't have the supplies. The pipeline was only below 70% capacity for a few days. What they were doing is responding to what they thought was major problem but never was.. (i.e. panic).

You are back pedaling in your statement. The bottom line is that several stations were rationed; it doesn’t matter your reasoning as to why, but they were all over the U.S.

 

[FromTexas]

You are back pedaling in your statement. The bottom line is that several stations were rationed; it doesn’t matter your reasoning as to why, but they were all over the U.S.

All over the U.S.?

That pipeline only fed the EAST COAST. We weren't rationed. Did you go to a gas station and only get 5 gallons? NO! Where were the lines you all spoke of? Where was the rationing to us you said was going to happen? Where was the impending doom that you insisted was still coming even while it was posted everything was just fine? 2 days later, gas prices were dropping again.

I wouldn't expect you to be able to say Bogart was right though.

 

[kwillia]

But the station was rationed, FT. He just made the decision to not ration the customers and when he ran out he ran out.

 

[Kizzy]

All over the U.S.?

That pipeline only fed the EAST COAST. We weren't rationed. Did you go to a gas station and only get 5 gallons? NO! Where were the lines you all spoke of? Where was the rationing to us you said was going to happen? Where was the impending doom that you insisted was still coming even while it was posted everything was just fine? 2 days later, gas prices were dropping again.

I wouldn't expect you to be able to say Bogart was right though.

See - I knew your crap comment was nothing more than a poke and pick at my husband's thread. You can go back into that thread and read the articles posted. They mentioned various places where there were lines, where there was no fuel delivered. Temporary or otherwise, it was rationed nomatter what excuses you want to make.

Also, nobody had a clue that things were going to be just fine a week later (not 2-days later) and that it wasn't as bad as they thought.

Gas prices are still not back to the price they were before Katrina.
.

 

[Bruzilla]

I only saw one gas station that was out and that was because he kept his gas at $2.79 when every other station in the area was at $2.99. There are five other stations within 1/4 mile of this one, and his was the only one that had any shortages. It was a demand thing, not a supply thing.

What bugs me is that in the two weeks or so since the storm, our gas has gone from $2.50, to $3.09, and back down to today's $2.62, yet it's the same damn gas that's either been in the service station's tanks or their supplier's tanks since before the storm, and the price that supposedly rose because of shortages resulting from the loss of the refineries is going down despite the fact that refineries are expected to be out through October.

Speaking of which, did you notice that the same media that was hyping big time the "fact" that there was a "real possibility" that production from the area was going to be "out for months" is ducking any responsibility for panic buying and high prices as we now learn that production will be back to normal before the end of Oct?

 

[FromTexas]

But the station was rationed, FT. He just made the decision to not ration the customers and when he ran out he ran out.

Actually, we just have her word that station received a rationed amount. However, reports showed gas deliveries continued.. now, this has come out of an initial post by her. A few stations does not make this...

who owns a service station that he got word that all gas in the Metropolitan area is being rationed when delivered to gas stations. Get ready for the long lines!

My comment directly relates to us being rationed, long lines, and reduced wholesale supplies. None of which happens. Nothing in that quote proved true. In addition, the rest of the screams by her and everyone about supplies counter to what I and others were posting were never validated. All that happened was panic. I still bet the guy who stated it (if anyone did) was responding just to panic among owners more than anything or with the supplier. There was never a legitimate shortage. Therefore, there was never a legitimate need to ration.. which is what we had been saying the whole time.

 

[kwillia]

Reminder... my experiences are with deisel fuel. I had no problem fueling my gas vehicles.

 

[FromTexas]

Reminder... my experiences are with deisel fuel. I had no problem fueling my gas vehicles.

That makes perfect sense though. Gas stations usually only have a small amount of diesel compared to other fuels. When panic ensues, the diesel would probably run out first. There are plenty of diesel pickups and others on the road.

 

[kwillia]

Plus the fact that the station was rationed.

 

[FromTexas]

Plus the fact that the station was rationed.

Who told you the station you went to was rationed? There has still not been one validated D.C. area report of a rationing.

Here is a question to the AAA Public and Government Affairs manager specifically from Sept 2nd.

Are all Maryland gas stations shuttung down today?

John Townsend: During times of national or regional crisis, rumors spread more quickly than the truth. Given the current crisis stemming from the aftermath of Hurricane Katrina, there is a greater sense of hopelessness when things appear to be spiraling out of control. However, this is just another rumor.

On the other hand, there are reports in the media that some stations are closing early to avoid shortage.

Despite the trying circumstances, you should be able to find plenty of gasoline. However, you might not like the price that you will pay for the increasingly precious commodity. Thanks.

See, the only thing we have to go on for rationing is what someone stated someone else said. Again, I tried to say its panic at first on that persons part or their immediate supplier. That is not rationing. That is them acting aggresive due to panic. However, if you want the rest... I really would just call it bullshit rumors like everything else. I was trying to be nice to Kizz and meet halfway, but that doesn't seem to be working out very well.

 

[kwillia]

Look, FT, I agree with you that the fuel industry took advantage of this situation. I'm simply stating that I personally can say that I was affected by stations being rationed. Yes, it was only a minimal impact over a very short period and yes I was able to get my fuel else where, but I am saying it did happen and when I need 250 gallons of diesel a day to get the job done, I very well could of been greatly affected had they not gotten the flow going again as soon as they did.

 

[Kizzy]

Actually, we just have her word that station received a rationed amount. However, reports showed gas deliveries continued.. now, this has come out of an initial post by her. A few stations does not make this...

HIS

The thread

People can form their own opinions.

Your 1st post in this thread showed its intention.

 

[FromTexas]

Look, FT, I agree with you that the fuel industry took advantage of this situation. I'm simply stating that I personally can say that I was affected by stations being rationed. Yes, it was only a minimal impact over a very short period and yes I was able to get my fuel else where, but I am saying it did happen and when I need 250 gallons of diesel a day to get the job done, I very well could of been greatly affected had they not gotten the flow going again as soon as they did.

Who said they were rationed though? Were they just out of diesel are did they say they couldn't get any more because they were rationed?

 

[kwillia]

The owner of the station, a good friend of my husband, told my husband personally that he had been told deliveries were being rotationed and that it was likely he could be without fuel at times. This was told to him the very day the fuel prices started doing their hike dance, and it did happen just as he told us.