[Texgreen] Beware summer gas prices

[Roger Baker]

If there is anything that TxDOT fears discussing most, it is arguably =20=

peak oil, oil shortages, and the impact of rising prices on changing =20
Texan driving behavior and affecting their deficit financed toll road =20=

schemes. It is not just oil prices anymore; the whole world is short =20
of cheap oil, with OPEC lying about their production capacity by =20
claiming it isn't needed. The USA in particular is short on refining =20
capacity, which is the related bottleneck.  -- Roger

"... The International Energy Agency said Friday that the =20
Organization of Petroleum Exporting Countries needs to raise output =20
soon and raised concern over the ability of refiners and OPEC's =20
willingness to meet a 1.6 million barrels a day jump in oil product =20
demand in June. Suggestions by OPEC officials that there is no need =20
to boost its production levels "appear wide of the mark" the agency =20
said... With the start of summer driving season only weeks away, =20
analysts are concerned that gasoline supplies, though rising, won't =20
meet demand. Unplanned outages and scheduled maintenance at =20
refineries, sluggish imports and strong demand have plagued gasoline =20
stocks since early February. At least a dozen additional partial =20
shutdowns have occurred in the U.S. and internationally that cut =20
refining capacity..."

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<http://www.chron.com/disp/story.mpl/ap/business/4795409.html>=09

May 11, 2007, 5:49AM
Oil prices climb on IEA supply worries

LONDON =97 Oil prices rose Friday after a report from the IEA raised =20
concerns about the market's ability to meet an expected jump in =20
demand for oil products.

The International Energy Agency said Friday that the Organization of =20
Petroleum Exporting Countries needs to raise output soon and raised =20
concern over the ability of refiners and OPEC's willingness to meet a =20=

1.6 million barrels a day jump in oil product demand in June.

Suggestions by OPEC officials that there is no need to boost its =20
production levels "appear wide of the mark" the agency said.

"Steady output at current levels would lead (OPEC) undershooting our =20
calculated range for the call on its crude, and thus tightening =20
stocks further," the IEA said.

Light, sweet crude for June delivery rose 35 cents to $62.16 a barrel =20=

in electronic trading on the New York Mercantile Exchange by midday =20
in Europe. On London's ICE Futures exchange, June Brent crude rose 61 =20=

cents to $66.40 a barrel.

A day earlier, light, sweet crude prices rose amid broader gains in =20
energy futures as traders noticed a gas supply imbalance in =20
Wednesday's government inventory report.

The Energy Information Administration reported that gasoline stocks =20
rose an average of 400,000 barrels last week, the first increase in =20
13 weeks. But a closer inspection showed much of that increase was =20
due to a 1.1-million barrel increase in inventories on the West Coast =20=

only, not across the country.

The news caused gasoline futures for June delivery to jump 9.52 cents =20=

to $2.3261 a gallon on Thursday, and the U.S. national average price =20
of gas at the pump rose to $3.037 a gallon.

With the start of summer driving season only weeks away, analysts are =20=

concerned that gasoline supplies, though rising, won't meet demand. =20
Unplanned outages and scheduled maintenance at refineries, sluggish =20
imports and strong demand have plagued gasoline stocks since early =20
February. At least a dozen additional partial shutdowns have occurred =20=

in the U.S. and internationally that cut refining capacity.

Continued violence in Nigeria, Africa's largest oil producer and a =20
leading supplier to the United States, has also been supporting =20
higher oil prices. Kidnappings continued this week, and militants =20
staged coordinated attacks on three pipelines in the wetlands region, =20=

knocking out nearly 100,000 barrels a day of crude oil.

Heating oil futures rose 1.7 cent to $1.8795 per gallon on the Nymex =20
while natural gas prices slid 5.1 cents to $7.675 per 1,000 cubic feet.=