[FoRK] Authoritative explanation of gas spike in 2007/8?
Ken Ganshirt @ Yahoo
ken_ganshirt at yahoo.ca
Fri Oct 9 15:48:12 PDT 2009
--- On Fri, 10/9/09, Reese <howell.r at inkworkswell.com> wrote:
> > That caused...
> > 1. refineries to favour ULS Diesel over gasoline
> > production, ...
> > #1 created a (minor?) shortage of gasoline,
> No. It all gets cracked out in the distillation tower,
> diesel is a different, heavier molecular chain than gasoline.
> A spike in the demand for ULS diesel would not cause a shortage of
> gasoline, there would be an excess of it.
That explains something else I've sometimes wondered about: Why does the price of diesel at the pumps go up when demand for gasoline is down?
Low demand for pump gas = crack less pump gas = lower supply of diesel.
Lower supply of diesel = higher price.
Looking for the perfect gift? Give the gift of Flickr!
More information about the FoRK