[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.

Thanks.

        ...ken...


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