[FoRK] Authoritative explanation of gas spike in 2007/8?

Ken Meltsner meltsner at alum.mit.edu
Fri Oct 9 16:13:54 PDT 2009


Don't forget the other high volume product of crude -- heating oil.
Refineries traditionally switch their balance from heating oil-heavy
to gas-heavy in time for Memorial Day, and back around Labor Day.

Ken Meltsner

On 10/9/09, Ken Ganshirt @ Yahoo <ken_ganshirt at yahoo.ca> wrote:
> --- 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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