Doug MacIntyre
Doug MacIntyre
There's a lot of uncertainty about the summer.
average certain country nearly parts
There may be certain parts of the country that see that, but for the U.S. average I don't think we have anything nearly that low.
august barrels decline expect normally people september stop taking
Normally we'd expect to see a decline of about 400,000 barrels a day from August to September just for seasonal reasons, as people stop taking vacations.
average bigger coverage daily demand drive fleet growth higher levels percentage represent strong supply tends
Demand growth has become so strong that these higher supply levels don't represent the same daily demand coverage they used to. SUVs are making up a bigger percentage of the fleet and the average American tends to drive more miles.
above barrel crude falling gasoline oil prices summer year
That's what will keep crude oil prices above $60 a barrel for this year and keep gasoline prices from falling to $2 a gallon. We are forecasting prices to go back up this summer ... above $2.50.
coming felt increases likely price starting
That's just starting to be felt at the pump. We know there's likely to be more price increases before they start coming down.
against benefits economic pressure produce prudent weigh
You've got to weigh the economic benefits and the pressure to produce against what's prudent and safe.
abundant demand gasoline prices reason seemingly supplies time usual
The prices are going up because of the usual seasonal build-up in demand this time of year. The reason we still have prices going up when inventories are seemingly abundant is that there's a lot of uncertainty about gasoline supplies in the future.
chain draw globally katrina limits market oil perceived picture potential situation stretched supply tight vulnerable
What I draw from that is it confirms how tight the market actually is right now. To us, the big picture is we are in a situation globally and here in the U.S. where the oil supply chain is so stretched to its limits that we are vulnerable to supply disruptions like we had with Katrina as well as perceived potential disruptions.
continue few likely rise weeks
We think they're going to likely continue to rise for a few more weeks at least.
week
We may see another week or two of increases.
citing demand followed prices reasons supply
Just like we were citing supply and demand as the reasons why prices went up, it's the same reason they're going down. It's pretty much followed with what we would be expecting.
air damage elevated high prices rise stay ultimate
How high prices rise and how long they stay elevated is still up in the air because we don't know what the ultimate damage is going to be.
looks start
If you haven't already (hit $2), it looks like you never will. This is probably just the start of the seasonal rise.