I think a lot (if not most) of the diesel refined here in the USA is
shipped off to Yurp as they have limited refining capacity and high
demand due to more diesel vehicles. Maybe a better deal for the refiners?
--R
On 11/16/11 10:24 PM, Allan Streib wrote:
Craig<diese...@pisquared.net> writes:
I was planning on writing an email about this tonight.
Over the last few months, our gasoline prices have inched downward and
our diesel prices have inched upward.
Is that so consumers will feel good about "cheap" gasoline, but not see
the increased diesel prices because they are hidden in the cost of goods
and the goods manufacturers and sellers will be blamed?
Or is it because winter is approaching and people are stocking up on
heating oil?
Or is it because someone is jigging the futures prices?
The rationale I've heard is that with current refining technology, it's
possible to get a lot more gasoline out of a barrel of oil than in the
past. So years ago diesel was in some sense a "waste product" in the
refining process, plentiful relative to demand, and therefore cheap.
Cheaper than gasoline at any rate. Today, more of each barrel of crude
is refined into gasoline as there is higher demand for it. Therefore, a
lower supply of diesel, and higher prices.
Allan
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