“Oh, you pay baby...you pay.”
For the teeming millions that are having a hard time remembering that quote, it’s St. Elmo’s Fire. Coming from a street walker to Andrew McCarthy, truer words have never been spoken. Whether it came from her mouth or my experience with marriage, I can attest these are the facts. The other part to this truth is oil in America in 2014.
I think we can pretty much start working with the API numbers and start rethinking this myth that gasoline prices have peaked and are heading lower from here. For those of you that put faith in my weekly numbers, I pretty much hit them on the nose once again and I’m following through on my visions. Yes, I see dead people and consumers paying $4 a gallon in July.
- CRUDE (NYMEX:CLN14) -3.0M – I don’t usually swing big, but when I do I choose the last week of May. This extended maintenance season has gone on longer than American Idol and is getting as boring too. We think that not only do runs hit 16M b/d this week, we’re going to again see crude imports stay under 7M b/d.
- GASOLINE (NYMEX:RBN14) -1.5M – I’d like this number to come in large too, but I’m going to give production and imports the benefit of the doubt. We’ll get the lion’s share of production yield, but as the weather continues to heat up and kids wrap up school and head into summer break/vacation, we’re filling up the tanks. Look for imports to pick up the pace to the 700K b/d area and if not, then boom goes the dynamite.
- DISTILLATE +1.5M – Again, I’d like to go bigger here to the plus side. At some point we’re going to get some painful pile ups because refineries just can’t keep running this high while demand stays this low. I think that the real issue that refineries are dealing with is not trying to accommodate the high supply of light sweet crude, it’s about trying to turn the yield from distillates back to gasoline.
- UTILIZATION +1.0% - Oh yeah, it’s all about going big or going home this week. I feel more confident about these numbers because with Unemployment on Friday, nobody is going to care all that much about these anyway.
- CUSHING -1.5M – Well I have to stick to the normal somewhere along this week’s stats. The only thing I am going to say here is that we should be starting the countdown for Seaway Twin to start…30, 29, 28…