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Sunday, February 01, 2009

US refiners may strike.
Be warned!
The next increase in gasoline pricing just may have been brought by a variety of unions and companies in the good old USA.
Upwards of 24,000 refinery and maintenance workers are set to strike as of midnight tonight as contracts and reprieves run out. Some refineries are already preparing for shut-down while others will try to maintain production with replacement workers and management personnel.
If they do strike, some 1.8 million barrels a day of gasoline production may be disrupted and could cause a draw-down on the recent builds in gasoline inventory.
Draw-downs mean price increases to the consumer as the shortage of product gets a little on the scarce side. Depending on how long the strike lasts, we could see prices increase to over a buck a litre again-and soon.
So far this week, on the possible strike news, gasoline is averaging a rough 3.1 cents a litre up from the last price setting just last week. Four cents a litre is needed for that possibility to happen. If gasoline trades high or roughly the same as it did on Friday, then we can expect the interrupter formula to kick in later this week. Other markets have already seen increases in prices at the pump based on last week's activities on the strike matter.
Here in the province, we're not as likely to dodge the impacts of a US refiner strike either, even though we're miles away. Awww, the benefits of being part of the world economy and looking after Uncle Sam rather than your own, wa??
You might want to keep an eye on the blog Tuesday night for an "official word" on that thought.
I might add that heating, stove oils and diesel do not show signs of interruption according to what I have on paper.
*Whew!*
I'll be in touch!
George

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